SEC Seeks Court Order for Elon Musk's Testimony in Twitter Acquisition Probe – Coinpedia Fintech NewsNovember 17, 2023
On Thursday, the U.S. Securities and Exchange Commission (SEC) requested a federal judge to mandate that billionaire Elon Musk provide testimony about their probe into his acquisition of Twitter, now renamed X, for $44 billion.
This request was made through a filing in a federal court in San Francisco. In this filing, the SEC justified its demand for Musk’s testimony, asserting that its actions are within the scope of its legal powers.
Background of the SEC’s Inquiry
The news of Elon Musk’s acquisition of Twitter for $43 billion in 2022 marked a dramatic turn in the business world. Musk, the world’s wealthiest individual, has been under the SEC’s scrutiny since last month, with the agency seeking his testimony, a request he has deferred since September.
The SEC’s investigation focuses on Musk’s acquisition of Twitter stock in 2022, his subsequent renaming of the company to X, and his comments and filings related to this significant purchase. The agency noted Musk’s failure to appear for a scheduled interview in September as part of their investigation.
Musk’s Legal Response
On November 2, Musk and his legal team urged the judge to dismiss the SEC’s demand for his testimony, arguing that Musk had already provided two testimonies and accusing the SEC of overstepping its authority.
Contradicting Musk’s claim of having testified twice, the SEC asserted their legal right to request testimony and documents for their investigative purposes in their recent court filing. The agency also mentioned acquiring new documents pertinent to the investigation since their last interview with Musk.
Musk’s Wider Legal Challenges
Beyond the SEC’s probe, Elon Musk faces several other legal challenges. Reports indicate that the U.S. Department of Justice is investigating claims about Tesla’s self-driving technology. Additionally, federal prosecutors in New York are reportedly examining Musk’s corporate disclosures and claims about the performance of his electric vehicles.
This legal tussle represents the latest in a series of contentious interactions between Musk and the U.S. market regulator, highlighting the complex relationship between one of the world’s most influential entrepreneurs and regulatory authorities.
Source: Read Full Article