The United States Securities And Exchange Commission is suing Elon Musk to compel him to testify in a probe regarding the latter’s purchase of Twitter in 2022. Elon Musk took over Twitter for $44 billion and has now renamed the company as X.
The SEC claims that Elon Musk did not comply with a subpoena (summon of the court) to testify. The commission stated that the owner of X, also the richest man in the world, failed to appear for testimony on 15 September 2023.
The testimony required Musk to testify against potential violations of US Securities Laws during the purchase of Twitter. That is the reason why the SEC filed a lawsuit against Musk. The investigation is related to possible securities fraud during the purchase of Twitter’s shares, as Musk was in the process of buying stock in the company.
The attorneys representing the SEC wrote,
“Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred. Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony.”
The SEC also stated that it contacted Musk and tried to find an agreeable time and place to have a meeting. It also claimed that it offered Musk to meet in Fort Worth, Texas, where the agency’s office is located. The office is present near the current personal residence of the CEO of X. The agency complained that Musk refused to appear at the testimony every time.
On the other hand, Elon Musk’s attorney, Alex Spiro, stated –
“the SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation—enough is enough.
According to the legal filing, a hearing is scheduled to happen on 9 November 2023 between Musk and the SEC.