The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against X owner Elon Musk after the Tesla CEO failed to appear for a September 15 testimony.
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SEC Investigates Twitter Acquisition
In October 2022, Musk acquired Twitter, now known as X, for roughly $44 billion. The SEC is now looking into the acquisition and whether anyone has committed securities fraud upon the purchase of Twitter shares last year.
In May 2023, the SEC served a subpoena on Musk asking the CEO to appear for a September testimony about the investigation but Musk failed to appear. "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," the attorneys wrote in the complaint.
The commission has reached out and tried to find an amicable time and place for Musk, even to the point of offering to meet him at the agency's office in Fort Worth Texas. Moreover, the SEC proposed multiple dates for October and November this year. However, Musk's side has refused to appear.
Musk's Attorney Explains Refusal to Testify
Musk's attorney, Alex Spiro, wrote back to the complaint stating that the SEC has taken testimony from Musk multiple times already and "enough is enough." Meanwhile, the SEC claimed that Musk is under the impression that the subpoena is the SEC's method to "harass" him, thus his decision to ditch the testimony requests.
The SEC continues its fact-finding investigation towards the issue and has stated that the commission "has not concluded that any individual or entity has violated the federal securities laws."
On November 9, a legal hearing on the filing is set to take place.
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