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Elon Musk sued by SEC over late 2022 disclosure of Twitter stake

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Elon Musk sued by SEC over late 2022 disclosure of Twitter stake

The U.S. Securities and Exchange Commission sued Elon Musk on Tuesday, alleging failure to timely disclose that he bought more than 5% of Twitter’s stock in 2022 before he took over the social media company.

The lawsuit, filed in a federal court in Washington, accuses Musk — tapped by Trump to co-head a so-called “Department of Government Efficiency” — of violating federal securities law because of the late disclosure.

The litigation underscores the longstanding tension between Musk, who backed President-elect Donald Trump, and the U.S. government. The eccentric billionaire has clashed with the SEC before, including over what the agency described as false and misleading statements he had posted on Twitter about taking his other company, Tesla, private.

A federal jury in San Francisco in Feb. 2023 cleared Musk of claims by Tesla investors that he defrauded them.

Under federal law, Musk was required to disclose his stake in Twitter 10 days after he acquired more than 5% of Twitter’s stock in March 2022, according to the lawsuit.

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Instead, Musk disclosed his stake in Twitter in April 2022, 11 days after the regulatory deadline. By then, the billionaire had bought more 9% of Twitter’s stock. Twitter’s stock jumped more than 27% over its previous day’s closing price after Musk made the disclosure.

“As a result, Musk was able to continue purchasing shares at artificially low prices, allowing him to underpay by at least $150 million for shares he purchased after his beneficial ownership report was due,” the lawsuit states.

The action also harmed investors who didn’t know about Musk’s stake and ended up selling their Twitter shares at low prices, the SEC alleges.

Alex Spiro, Musk’s lawyer, said in a statement that “Mr. Musk has done nothing wrong and everyone sees this sham for what it is.” He accused the SEC of engaging in a “multi-year campaign of harassment” against the billionaire that “culminated in the filing of a single-count ticky tak complaint” against him.

SEC Chair Gary Gensler is stepping down Jan. 20, the day of Trump’s inauguration. In December, Trump said he would nominate Paul Atkins, a cryptocurrency advocate, to lead the securities regulator.

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Musk’s big stake in Twitter was an early sign in 2022 that he might buy the company, which was struggling to attract ad dollars and compete with larger social networks such as Facebook.

After trying to back out of buying the social media company for $44 billion, he completed his acquisition of Twitter in October 2022. Musk, who renamed Twitter to X and took the company private, said he bought the platform to promote free speech.

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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Federal judge blocks Trump from cutting childcare funds to Democratic states over fraud concerns

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A federal judge Friday temporarily blocked the Trump administration from stopping subsidies on childcare programs in five states, including Minnesota, amid allegations of fraud.

U.S. District Judge Arun Subramanian, a Biden appointee, didn’t rule on the legality of the funding freeze, but said the states had met the legal threshold to maintain the “status quo” on funding for at least two weeks while arguments continue.

On Tuesday, the U.S. Department of Health and Human Services (HHS) said it would withhold funds for programs in five Democratic states over fraud concerns.

The programs include the Child Care and Development Fund, the Temporary Assistance for Needy Families program, and the Social Services Block Grant, all of which help needy families.

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USDA IMMEDIATELY SUSPENDS ALL FEDERAL FUNDING TO MINNESOTA AMID FRAUD INVESTIGATION 

On Tuesday, the U.S. Department of Health and Human Services said it would withhold funds for programs in five Democratic states over fraud concerns. (AP Photo/Jose Luis Magana, File)

“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” HHS Deputy Secretary Jim O’Neill said in a statement on Tuesday.

The states, which include California, Colorado, Illinois, Minnesota and New York, argued in court filings that the federal government didn’t have the legal right to end the funds and that the new policy is creating “operational chaos” in the states.

U.S. District Judge Arun Subramanian at his nomination hearing in 2022.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

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In total, the states said they receive more than $10 billion in federal funding for the programs. 

HHS said it had “reason to believe” that the programs were offering funds to people in the country illegally.

‘TIP OF THE ICEBERG’: SENATE REPUBLICANS PRESS GOV WALZ OVER MINNESOTA FRAUD SCANDAL

The table above shows the five states and their social safety net funding for various programs which are being withheld by the Trump administration over allegations of fraud.  (AP Digital Embed)

New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.”

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New York Attorney General Letitia James, who is leading the lawsuit, called the ruling a “critical victory for families whose lives have been upended by this administration’s cruelty.” (Win McNamee/Getty Images)

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Fox News Digital has reached out to HHS for comment.

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

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Washington National Opera is leaving the Kennedy Center in wake of Trump upset

In what might be the most decisive critique yet of President Trump’s remake of the Kennedy Center, the Washington National Opera’s board approved a resolution on Friday to leave the venue it has occupied since 1971.

“Today, the Washington National Opera announced its decision to seek an amicable early termination of its affiliation agreement with the Kennedy Center and resume operations as a fully independent nonprofit entity,” the company said in a statement to the Associated Press.

Roma Daravi, Kennedy Center’s vice president of public relations, described the relationship with Washington National Opera as “financially challenging.”

“After careful consideration, we have made the difficult decision to part ways with the WNO due to a financially challenging relationship,” Daravi said in a statement. “We believe this represents the best path forward for both organizations and enables us to make responsible choices that support the financial stability and long-term future of the Trump Kennedy Center.”

Kennedy Center President Ambassador Richard Grenell tweeted that the call was made by the Kennedy Center, writing that its leadership had “approached the Opera leadership last year with this idea and they began to be open to it.”

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“Having an exclusive relationship has been extremely expensive and limiting in choice and variety,” Grenell wrote. “We have spent millions of dollars to support the Washington Opera’s exclusivity and yet they were still millions of dollars in the hole – and getting worse.”

WNO’s decision to vacate the Kennedy Center’s 2,364-seat Opera House comes amid a wave of artist cancellations that came after the venue’s board voted to rename the center the Donald J. Trump and the John F. Kennedy Memorial Center for the Performing Arts. New signage featuring Trump’s name went up on the building’s exterior just days after the vote while debate raged over whether an official name change could be made without congressional approval.

That same day, Rep. Joyce Beatty (D-Ohio) — an ex officio member of the board — wrote on social media that the vote was not unanimous and that she and others who might have voiced their dissent were muted on the call.

Grenell countered that ex officio members don’t get a vote.

Cancellations soon began to mount — as did Kennedy Center‘s rebukes against the artists who chose not to appear. Jazz drummer Chuck Redd pulled out of his annual Christmas Eve concert; jazz supergroup the Cookers nixed New Year’s Eve shows; New York-based Doug Varone and Dancers dropped out of April performances; and Grammy Award-winning banjo player Béla Fleck wrote on social media that he would no longer play at the venue in February.

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WNO’s departure, however, represents a new level of artist defection. The company’s name is synonymous with the Kennedy Center and it has served as an artistic center of gravity for the complex since the building first opened.

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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AOC accuses Vance of believing ‘American people should be assassinated in the street’

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Democratic Rep. Alexandria Ocasio-Cortez is leveling a stunning accusation at Vice President JD Vance amid the national furor over this week’s fatal shooting in Minnesota involving an ICE agent.

“I understand that Vice President Vance believes that shooting a young mother of three in the face three times is an acceptable America that he wants to live in, and I do not,” the four-term federal lawmaker from New York and progressive champion argued as she answered questions on Friday on Capitol Hill from Fox News and other news organizations.

Ocasio-Cortez spoke in the wake of Wednesday’s shooting death of 37-year-old Renee Nicole Good after she confronted ICE agents from inside her car in Minneapolis.

RENEE NICOLE GOOD PART OF ‘ICE WATCH’ GROUP, DHS SOURCES SAY

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Members of law enforcement work the scene following a suspected shooting by an ICE agent during federal operations on January 7, 2026, in Minneapolis, Minnesota. (Stephen Maturen/Getty Images)

Video of the incident instantly went viral, and while Democrats have heavily criticized the shooting, the Trump administration is vocally defending the actions of the ICE agent.

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Vance, at a White House briefing on Thursday, charged that “this was an attack on federal law enforcement. This was an attack on law and order.”

“That woman was there to interfere with a legitimate law enforcement operation,” the vice president added. “The president stands with ICE, I stand with ICE, we stand with all of our law enforcement officers.”

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And Vance claimed Good was “brainwashed” and suggested she was connected to a “broader, left-wing network.”

Federal sources told Fox News on Friday that Good, who was a mother of three, worked as a Minneapolis-based immigration activist serving as a member of “ICE Watch.”

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Ocasio-Cortez, in responding to Vance’s comments, said, “That is a fundamental difference between Vice President Vance and I. I do not believe that the American people should be assassinated in the street.”

But a spokesperson for the vice president, responding to Ocasio-Cortez’s accusation, told Fox News Digital, “On National Law Enforcement Appreciation Day, AOC made it clear she thinks that radical leftists should be able to mow down ICE officials in broad daylight. She should be ashamed of herself. The Vice President stands with ICE and the brave men and women of law enforcement, and so do the American people.”

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