The SEC Seeks Elon Musk’s Testimony in Twitter Takeover Probe
The U.S. Securities and Exchange Commission (SEC) is seeking to compel billionaire Elon Musk to testify in its investigation of his purchase of the social media platform X, formerly known as Twitter.
In a litigation release, the SEC has filed an application requesting an order that would require Musk to comply with a subpoena to testify, which he has thus far ignored.
SEC Alleges Violation of Securities Laws
The SEC alleges that Musk may have violated securities laws when he acquired Twitter in October 2022 for $44 billion.
The regulatory agency explains that if someone refuses to comply with a subpoena issued by SEC enforcement staff, the Commission can file a subpoena enforcement action in federal district court to compel compliance.
The SEC’s filing states that the testimony subpoena to Musk is related to an ongoing investigation into potential violations of federal securities laws in connection with his Twitter stock purchases and related statements and filings in 2022.
Musk’s Failure to Appear and Objections
According to the SEC, despite agreeing to testify and being served with an investigative subpoena in September, Musk did not appear in court and raised several objections.
Musk’s attorney claims that he has already testified multiple times and should not be required to do so again.
Hot Take: SEC Pursues Testimony from Elon Musk
The U.S. Securities and Exchange Commission is intensifying its investigation into Elon Musk’s acquisition of Twitter. The regulatory agency seeks to compel the billionaire entrepreneur to testify about potential violations of securities laws related to the purchase. Despite agreeing initially, Musk has failed to appear in court and raised objections. His attorney argues that Musk has already provided testimony multiple times and should not be required to do so again. The SEC is determined to obtain Musk’s testimony in order to gather additional information relevant to its investigation. The outcome of this legal battle could have significant implications for both Musk and the SEC.
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