In one in every of its final actions earlier than President Donald Trump took workplace in January, the Securities and Alternate Fee sued Elon Musk for securities violations associated to his acquisition of Twitter, now often called X. Now, the highest lawyer on the case, Robin Andrews, has resigned from the company, in response to a LinkedIn submit and a courtroom submitting. On LinkedIn, Andrews didn’t cite a selected cause for his resolution, however described his resignation as a “heartbreaking day” that got here after weeks of excruciating deliberation.
In keeping with two folks accustomed to the resignation, who spoke with Fortune on the situation of anonymity to debate the non-public deliberation, Andrews had expressed issues to colleagues that the SEC, underneath a Trump-appointed chair, would vote to dismiss the case or settle it for a small penalty. These issues have been a consider his resolution to go away the company, in response to the folks.
“The SEC must always be focused on protecting investors and holding violators accountable, no matter who they are,” Andrews wrote within the LinkedIn submit. “Only then can the public have confidence that the securities markets are not rigged against ‘main street’ investors in favor of the wealthy or the powerful.”
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 could you do this to me?” Musk wrote, referencing then–SEC chair Gary Gensler.
Andrews declined to remark. A spokesperson for the SEC additionally declined to remark.
SEC v. Musk
Musk has had a long-standing feud with the SEC, relationship again to 2018, when the company charged Musk with securities fraud for a sequence of tweets a couple of potential transaction to take Tesla non-public. Musk settled the fees, agreeing to a private $20 million penalty and to step down as the corporate’s chairman.
Musk’s newer 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 serious a securities violation … but a very obvious violation,” describing it as an “absolutely open-and-shut violation of the law.”
The SEC finally filed its lawsuit on Jan. 14, 2025, simply days earlier than Trump was set to take workplace, with Andrews listed because the lead lawyer, calling for a civil penalty and disgorgement, a authorized time period for returning income. Musk’s legal professionals denounced the motion, describing it as a “sham” after a “multiyear 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 answer the SEC’s grievance. Simply three days earlier than, SEC employees have been knowledgeable over electronic mail that the company would start working with DOGE officers, although the extent of its mandate remained unknown.
One other lawyer on the Musk lawsuit, Bernard Smyth, additionally left the company final week, in response to two folks accustomed to the matter.
This story was initially featured on Fortune.com
