In one in all its final actions earlier than President Donald Trump entered workplace in January, the Securities and Alternate Fee sued Elon Musk for securities violations associated to his acquisition of Twitter, now often known as X. Now, the highest legal professional on the case, Robin Andrews, has resigned from the company, in accordance with a LinkedIn submit and a courtroom submitting. On LinkedIn, Andrews didn’t cite a particular cause for his resolution, however described his resignation as a “heartbreaking day” that got here after weeks of excruciating deliberation.
In accordance with two individuals acquainted with the resignation, who spoke with Fortune on the situation of anonymity to debate the personal deliberation, Andrews had expressed issues to colleagues that the SEC, beneath a Trump-appointed Chair, would vote to dismiss the case or settle it for a small penalty. These issues had been a consider his resolution to go away the company, in accordance with the individuals.
“The SEC should at all times be targeted on defending buyers and holding violators accountable, regardless of who they’re,” Andrews wrote within the LinkedIn submit. “Solely then can the general public believe that the securities markets usually are not rigged in opposition to “important road” buyers in favor of the rich or the highly effective.”
His April 4 resignation got here just some days after Musk’s Division of Authorities Effectivity, or DOGE, entered the SEC, and after Musk taunted the company for its resolution to convey an enforcement motion. In December, Musk posted a letter on his social media platform X that he acquired from the company issuing a settlement demand. “Oh Gary, how might you do that to me?” Musk wrote, referencing then-SEC chair Gary Gensler.
Andrews declined to remark. A spokesperson for the SEC didn’t instantly reply to a request for remark.
SEC v. Musk
Musk has had a long-standing feud with the SEC, courting again to 2018, when the company charged Musk with securities fraud for a sequence of tweets a couple of potential transaction to take Tesla personal. Musk settled the costs, agreeing to a private $20 million penalty and to step down as the corporate’s chairman.
Musk’s more moderen dispute with the SEC got here after he acquired Twitter in 2022. The SEC launched an investigation into Musk shopping for a minority place within the firm earlier than the acquisition and whether or not he correctly disclosed his place, which allegedly allowed him to pay much less for shares than he would have needed to with correct disclosure.
Musk and SEC legal professionals fought in courtroom over scheduling an interview, with the billionaire poking barbs on the company on X as its enforcement motion drew close to. Bloomberg columnist Matt Levine wrote that the pending litigation was “not that critical a securities violation…however a really apparent violation,” describing it an “completely open-and-shut violation of the regulation.”
The SEC in the end filed its lawsuit on Jan. 14, 2025, simply days earlier than Trump was set to take workplace, with Andrews listed because the lead legal professional, calling for a civil penalty and disgorgement, a authorized time period for returning earnings. Musk’s legal professionals denounced the motion, describing it as a “sham” after a “multiyear marketing campaign of harassment.”
As Musk’s energy within the Trump administration grew, together with directing DOGE to reshape numerous federal companies, the lawsuit continued to slowly progress. On March 31, the SEC and Musk collectively moved to set June 6 because the date for Musk to reply to the SEC’s grievance. Simply three days earlier than, SEC employees had been knowledgeable over electronic mail that the company would start working with DOGE officers, although the extent of its mandate remained unknown.
One other legal professional on the Musk lawsuit, Bernard Smyth, additionally left the company final week, in accordance with two individuals acquainted with the matter.
This story was initially featured on Fortune.com
