Intel stock extends gains after report of possible U.S. government stake
Investing.com-- A federal judge said on Tuesday that a lawsuit brought by 14 U.S. states challenging the legality of Elon Musk’s role in the Department of Government Efficiency (DOGE) under President Donald Trump may proceed.
The suit alleges that Tesla (NASDAQ:TSLA) CEO Musk, classified as a “special Government employee,” functioned as a de facto principal officer of DOGE, an agency created by executive order without congressional authorization, and wielded sweeping authority over federal spending, personnel, and regulations.
The plaintiffs claimed Musk and DOGE unilaterally dismantled agencies, terminated federal contracts, and accessed sensitive systems in violation of the Constitution’s Appointments Clause, the judge stated in a court filing.
In a 42-page opinion, Judge Tanya S. Chutkan denied the defendants’ motion to dismiss the case against Musk and DOGE, allowing the states’ ultra vires claims to move forward. The court found the DOGE entity lacked a statutory or constitutional basis and that Musk’s alleged conduct exceeded lawful bounds.
However, the court dismissed claims against Trump in his official capacity, citing established precedent barring courts from enjoining the president’s discretionary duties.