SEC Enforces Subpoena: Elon Musk to Testify in Twitter Probe
In a significant turn of events, a federal court in California has ordered Elon Musk to testify before the US Securities and Exchange Commission (SEC) regarding potential violations of federal securities laws related to his purchase of Twitter. This latest development comes as the SEC intensifies its probe into Musk’s actions surrounding the acquisition of the social media giant, now known as X.
The court ruled that the evidence gathered so far is deemed relevant and material to the SEC’s ongoing investigation. Musk has been given a week to meet with the SEC and agree on the details of the testimony, including the date and location. The court filing on Saturday stated that the testimony required of Musk is not unduly burdensome.
This legal battle stems from the SEC’s interest in Musk’s purchases of Twitter stock ahead of the company’s acquisition and statements he made about his investments. The regulatory body had previously sent Musk a letter in 2022 seeking information about the delayed disclosure of his Twitter stake, which he reported a week late.
While Musk had previously testified before the SEC in July of 2022, the agency, armed with “thousands of new documents” from various parties, including some authored by Musk, wants to question him about the newly acquired information. Musk’s counsel initially agreed to testify last September but later requested a one-day postponement and eventually refused to appear, as per the filing on Saturday.
Elon Musk, the CEO and co-founder of Tesla, refutes the grounds for the SEC’s investigation, dismissing it as baseless and claiming that it seeks irrelevant information. Musk contends that the subpoena exceeds the SEC’s authority since it was issued by an SEC staffer appointed by the agency’s director of enforcement, rather than an officer appointed by the president, a court, or the head of a federal department. However, the court rejected this argument, stating that the subpoena is authorized by the Exchange Act, which primarily regulates transactions of securities in the secondary market.
As the legal saga unfolds, stakeholders and the public are closely watching the proceedings, awaiting further insights into Musk’s actions and the SEC’s allegations.
In a significant turn of events, a federal court in California has ordered Elon Musk to testify before the US Securities and Exchange Commission (SEC) regarding potential violations of federal securities laws related to his purchase of Twitter. This latest development comes as the SEC intensifies its probe into Musk’s actions surrounding the acquisition of…