SEC Seeks Legal Action on Musk to Testify in Twitter Acquisition Case
The US Securities and Exchange Commission (SEC) is taking legal action to ensure Elon Musk's testimony in its investigation into his acquisition of Twitter, now known as X. The billionaire investor's USD 44 billion purchase of the social media platform in October 2022 has triggered a probe focusing on Twitter shares he acquired before the takeover.
SEC Pushes for Musk's Testimony Over Twitter Stock Purchases
The SEC has now sought a court order compelling Elon Musk, the owner of X, to provide testimony regarding Twitter stock transactions that occurred before the acquisition of the social media giant. This move comes after Musk failed to comply with previous requests last month, as reported by Bloomberg and Reuters, marking another chapter in his ongoing feud with the SEC.
The investigation, initiated in April 2022, seeks to determine whether Musk violated federal securities laws with his Twitter share purchases. It also scrutinizes his statements and filings related to the deal, with the Commission questioning the adequacy of his paperwork.
Before finalizing the Twitter acquisition, Musk had purchased a 9.2% stake in the company in March of the previous year. He disclosed this significant stake to the SEC in April. Later that month, the financial regulator raised concerns about the disclosure.
In a surprising turn of events on Thursday, the SEC revealed that it had subpoenaed Musk in May 2023, and initially, he had agreed to appear for testimony at the SEC's San Francisco office on September 15. However, just two days before the scheduled interview, he raised several objections, which the SEC deemed "spurious."
Musk Accuses SEC of Harassment Amid Ongoing Legal Battle
Elon Musk accused the government agency of harassment and expressed dissatisfaction with the chosen meeting location. In response, investigators proposed new dates and offered to move the interview to Fort Worth, Texas, near Musk's current residence. However, Musk refused to cooperate.
Throughout the probe, the SEC has requested thousands of documents from Musk and other relevant parties. According to a filing made on October 5 in San Francisco federal court, Musk has already provided testimony twice in July 2022. Alex Spiro, an attorney representing the investor, stated:
"The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation; enough is enough."
It's worth noting that Elon Musk's encounters with the SEC are not limited to the Twitter acquisition. In 2018, he faced scrutiny for his involvement in claims related to self-driving cars at Tesla, the electric vehicle manufacturer he chaired. Additionally, he has had contentious interactions with the US Justice Department and the Biden administration.
In a comment made on X, Musk expressed his perspective on the latest and past encounters with regulatory bodies, stating, "A comprehensive overhaul of these agencies is sorely needed." He further suggested the establishment of a commission to take punitive action against individuals who misuse their regulatory power for personal and political gain, adding, "I can't wait for this to happen."
What are your thoughts on Elon Musk’s clash with the SEC and other US authorities? Please share your thoughts and opinions in the comments section below.
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