SEC Seeks Court Order to Force Elon Musk’s Testimony in Twitter Investigation
October 5, 2023, 5:11 PM ET
The Securities and Exchange Commission (SEC) has taken steps to ensure Elon Musk’s compliance with a deposition in an ongoing investigation regarding his acquisition of Twitter, now known as X. The SEC alleged that Musk failed to appear for testimony as required by a May subpoena, despite previously agreeing to show up at the SEC’s office in San Francisco.
Regulators claim that Musk waited until just two days before the scheduled date to inform the SEC that he would not be attending. Consequently, the SEC is now seeking a court order to compel Musk’s participation.
For around $44 billion, Musk acquired the popular social media platform in October 2022. The testimony subpoena is part of the SEC’s inquiry into potential violations of federal securities laws related to Musk’s Twitter purchase, as well as statements he made last year and SEC filings associated with the acquisition.
According to an SEC press release, the commission seeks Musk’s testimony to gather information not already in their possession, which is considered relevant to their legitimate and lawful investigation. The SEC clarified that there has yet to be a determination of any violations of federal securities laws by any individual or entity.
In response to the SEC’s court order and other ongoing government investigations into his companies, Musk took to his Twitter account, formerly known as X, to express his thoughts. He insisted that a comprehensive overhaul of these agencies is much needed and suggested the establishment of a commission to take punitive action against individuals who have allegedly abused their regulatory power for personal and political gain.
Musk concluded his tweet by eagerly anticipating the implementation of these changes. The SEC’s attempt to secure Musk’s testimony and the investigation into his Twitter purchase continue to unfold.