Judge orders Elon Musk to provide testimony in the SEC’s Twitter investigation
A federal judge ruled on Thursday that Elon Musk must testify once again in the U.S. Securities and Exchange Commission’s investigation into his $44 billion takeover of Twitter, giving them a week to decide on the interview date and location.
The regulator’s position was confirmed by Judge Laurel Beeler’s order on Saturday night, which formalized a preliminary ruling she made in December.
During an interview with the SEC in September, Musk declined to attend the interview and was asked to testify as part of an investigation into his purchase of Twitter. The SEC sued Musk in October to force him to provide testimony from both Tesla and SpaceX CEOs involved in the acquisition probe.
An investigation by the agency is underway to determine if Musk followed the law by filing paperwork regarding his purchases of Twitter stock, and whether any inaccurate statements were made in connection with the deal.
Musk opposed the SEC’s attempt to interview him, claiming that it had already conducted two interviews and accusing the regulator of harassment.
An investigation by the agency is underway to determine if Musk followed the law by filing paperwork regarding his purchases of Twitter stock, and whether any inaccurate statements were made in connection with the deal.
Musk opposed the SEC’s attempt to interview him, claiming that it had already conducted two interviews and accusing the regulator of harassment.
And that’s an argument that Beeler rejected. According to her statement in the ruling, she stated that “the SEC had the right and authority” to issue the subpoena, which sought pertinent information.
Assuming the SEC and Musk cannot agree on a time and date for the interview, Beeler will seek input from both parties to determine their decision.
The regulator took legal action against Musk in 2018, after he tweeted “funding secured” about a potential plan to take Tesla private. In an effort to resolve the case, Musk agreed to have a Tesla attorney review his tweets about the electric vehicle manufacturer. The SEC filed a second lawsuit against him in 2019 for allegedly violating that provision.
The U.S. Supreme Court has been asked by Musk to review the agreement, as it is considered to be in violation of his constitutional right to free speech.
According to court documents, the CEO and co-founder of Tesla who acquired Twitter, now X, in October of 2022, refutes claims that the SEC’s investigation is baseless and that it seeks irrelevant information.
Musk maintains that the subpoena is too extensive for the SEC because it was issued by an SEC employee appointed by the agency’s director of enforcement, rather than by an officer appointed by the president, a court, or a federal department head. On Saturday, the court denied that argument and declared that the subpoena is authorized by the Exchange Act.
