US securities regulators filed a lawsuit against Elon Musk in federal court in Washington, stemming from his $44 billion acquisition of Twitter (X). This legal action against Musk, who has emerged as a key advisor to President Donald J. Trump, is anticipated to be one of the more controversial concluding moves of the Securities and Exchange Commission under the leadership of departing chair Gary Gensler.
However, its impact may soon be diminished as Trump prepares to appoint new leadership for the agency. The SEC alleges that Musk violated securities laws by accumulating a substantial stock position in Twitter in 2022 without the necessary filings, asserting that he delayed the required disclosure to the SEC by 11 days.
American Express has committed to paying around $230 million in penalties due to misleading practices related to selling credit cards and wire services to small business clients. This settlement encompasses a $108.7 million civil penalty imposed by the Justice Department, alongside a non-prosecution agreement with the Eastern District of New York, stemming from a criminal investigation into some of these activities.
Additionally, the company anticipates finalizing an agreement in principle with regulators at the Federal Reserve in the coming weeks. This Federal Reserve matter will contribute to the overall penalty, which American Express has indicated is included in the estimated $230 million total.