Wow. According to the Wall Street Journal, Elon and his lawyers were on the verge of agreeing to a settlement with the SEC when they suddenly backed out, leading the SEC to file suit.
The SEC had crafted a settlement with Mr. Musk—approved by the agency’s commissioners—that it was preparing to file Thursday morning when Mr. Musk’s lawyers called to tell the SEC lawyers in San Francisco that they were no longer interested in proceeding with the agreement, according to people familiar with the matter. After the phone call, the SEC rushed to pull together the complaint that it subsequently filed, the people said.
That's either incredibly gutsy or incredibly stupid. What were they thinking?