Elon Musk Faces SEC Lawsuit Over Testimony in $44 Billion Twitter Deal
The SEC alleges that Musk may have violated federal securities laws during his purchase of Twitter and in subsequent statements and filings related to the transaction.
This investigation marks an escalation in the longstanding conflict between Musk and the SEC.
In May 2022, the SEC initiated an inquiry into Musk’s disclosure of his Twitter stake, raising questions about the adequacy of his regulatory filings.
In a recent court filing, the SEC disclosed that it had issued a subpoena to Musk in May 2023, requesting his testimony at the SEC’s San Francisco office.
Initially, Musk had agreed to testify on September 15. However, just two days before the scheduled appearance, he raised several objections and informed the SEC of his refusal to testify.
Musk also rejected the SEC’s proposals to conduct the deposition in Texas at a later date.
In response to the SEC’s actions, attorney Alex Spiro, representing Musk, stated, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”
Meanwhile, the SEC, in a press release, clarified that it is seeking Musk’s testimony to obtain information that is not already in its possession but is pertinent to its legitimate and lawful investigation.
This legal dispute arises from Musk’s acquisition of Twitter, initially building a significant minority stake in the platform, which he disclosed in April 2022.
Musk’s handling of this acquisition, from delayed disclosure filings to his changing stance on Twitter’s management, has been scrutinized.
The lawsuit filed on Thursday represents another chapter in the ongoing feud between Musk and the SEC, which began after Musk’s 2018 tweet about taking Tesla private.
Over the years, the SEC has launched multiple investigations into Musk’s actions.