Elon Musk's recent attempt to haul the SEC in front of the court has failed

Grace Kay
·2 min read
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Elon Musk, wearing a black suit and flanked by another man in a black suit and a police officer, walking in front of a gray metal barricade.
Elon Musk arriving at the Delaware Court of Chancery.Jonathan Ernst/Reuters

  • A federal judge on Thursday quashed Elon Musk's attempt to bring the SEC into court.

  • The CEO filed a letter last week accusing the agency of "endless, unfounded investigations" into Tesla.

  • The judge said that Musk's "precise application to the Court is unclear."

A federal judge denied Elon Musk's recent attempt to call the Securities and Exchange Commission (SEC) into court in an order that the judge posted on Thursday.

The district judge, Alison J. Nathan, said in the court order that Musk's "precise application to the Court is unclear," CNBC first reported.

Last week, Musk filed a letter in federal court via his attorney Alex Spiro that accused the agency of harassment in the form of "endless, unfounded investigations" into Tesla. The letter said the regulator had leaked information regarding investigations into the electric carmaker and withheld $40 million in funds from a 2018 settlement with Tesla and Musk regarding his tweets around potential plans to take the company private.

In the letter, Musk requested a conference with the SEC that would be facilitated by the US District Court to address its accusations. In response, the SEC said it has "sought to meet and confer with Tesla and Mr. Musk to address any concerns" and that it expects to submit a "proposed plan of distribution" for the $40 million in funds by the end of March.

Nathan said that the court cannot impose a deadline on the $40 million in funds that "does not currently exist." The district judge also said that the CEO's letter does not include "specific facts or legal authority" to justify "on-the-record assurance that the Commission has not leaked investigative details."

She noted Musk and Tesla could file a motion to inhibit an SEC subpoena, but would need "a non-frivolous basis."

Musk and the SEC have had a rocky relationship. As recently as last year, the SEC cited Musk for what it said were violations of the terms of the 2018 settlement.

Earlier this week, Musk said on Twitter that he has been "building a case" against the SEC. On Thursday, The Wall Street Journal reported that the agency is investigating Musk and his brother, Kimbal Musk, for potentially violating insider trading rules.

Read the original article on Business Insider

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