SEC Sues Musk to Make Him Testify in Twitter Takeover Investigation

SEC Sues Musk to Make Him Testify in Twitter Takeover Investigation – The U.S. Securities and Exchange Commission (SEC) is seeking a court order to compel Elon Musk, the owner of X, to testify in connection with their investigation into his Twitter stock transactions preceding his acquisition of the social media platform. This development follows Musk’s failure to cooperate last month and adds another layer to his ongoing dispute with the SEC.

Commenced in April 2022, the investigation aims to determine whether Musk violated federal securities laws by purchasing Twitter shares and scrutinizes his statements and filings related to the acquisition, raising questions about the completeness of his documentation. Notably, before finalizing the Twitter acquisition, Musk purchased a 9.2% stake in the company in March of the previous year and reported this stake to the SEC in April. 

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Subsequently, the regulatory body raised inquiries regarding the disclosure of this significant ownership stake. On Thursday, the regulatory body revealed it subpoenaed Musk in May 2023 and he initially agreed to appear to testify at its San Francisco office on Sept. 15. However, two days before the scheduled interview, he raised “several spurious objections,” according to the SEC.

Elon Musk alleged that the government agency was attempting to subject him to undue scrutiny and expressed dissatisfaction with the selected meeting venue. In response, investigators suggested alternative meeting dates and agreed to relocate the interview to Fort Worth, Texas, which is close to Musk’s current home. However, he declined to attend.

Throughout the course of the investigation, the SEC has sought an extensive number of documents from Musk and individuals connected to the matter. According to their filing in San Francisco federal court on October 5, 2022, Musk has already provided testimony on two occasions in July 2022. Alex Spiro, an attorney for the investor, issued a statement, saying: “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”

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Elon Musk’s encounters with the SEC did not originate from his involvement with Twitter. In 2018, he faced an investigation regarding his involvement in Tesla, the electric vehicle manufacturer he chaired, particularly in relation to the company’s assertions about self-driving cars. Additionally, he has had clashes with the U.S. Justice Department and the Biden administration. In a comment on X to a post on the latest and previous such cases, Musk stated that “a comprehensive overhaul of these agencies is sorely needed.” 

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