Ripple (XRP) Loss? Court Dismisses Elon Musk’s Lawsuit Against the SEC.
Recent reports suggest that a U.S. federal high court headed by district judge Alison Nathan has dismissed charges filed by Elon Musk, Tesla’s CEO and founder, against the Securities and Exchange Commission (SEC).
Musk stated in letters through his attorney Alex Spiro earlier this month, alleging that the agency leaked information about a federal investigation with an unidentified party.
The letter also alleged that the SEC since 2018, has harassed the Tesla boss and his company with ongoing lawsuits, including a subpoena sent in November 2021.
Furthermore, Musk accused the SEC of neglecting its duties to remit $40 million to Tesla shareholders, an amount the famous cryptocurrency proponent paid in fine to settle its 2018 securities charges.
The Ruling
Dismissing Musk’s call to bring the SEC before a court, Judge Nathan said there was no deadline indicating when the SEC would pay the $40 million to Tesla investors while advising the electric car company to set one.
“Otherwise, the Court cannot enforce a deadline that does not currently exist,” Judge Nathan wrote.
The court advised that the Tesla boss could file a motion to dismiss such orders on the continuous subpoenas sent to Musk and Tesla.
Furthermore, Judge Nathan said that the allegation about the SEC revealing information about a federal investigation to an unknown entity was dismissed because attorney Spiro did not include specific facts to support the allegation.
Musk Troubles with the SEC
In 2018, the SEC sued Musk and Tesla for issuing false and misleading statements via comments made by the company boss that he will be taking the U.S. electric car company private at $420 per share,
Although the duo reached a settlement agreement at the time, the SEC noted that Musk failed to notify the authorities of material company events.
More than two years later, Musk noted in a letter to the court this month that the SEC is trampling on his freedom of speech rights, adding that the continuous subpoenas slammed against him are retaliation moves by the agency because he criticized the government.
Ripple Investors Could be Disappointed
Last week, the Tesla boss indicated on Twitter that he was building a case against the SEC and did not provide more details about the development.
At the time, the crypto community, especially Ripple enthusiasts, were excited as they believed Musk’s lawsuits against the SEC would make matters light for Ripple, following the securities regulators’ lawsuit against the blockchain company.
With the court dismissing Musk’s charges against the SEC, the following ruling will determine Ripple’s lawsuit with the SEC.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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