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Elon Musk’s purchase of Twitter is still making headlines. In the most recent case, a judge has ordered Musk to testify in the SEC’s probe into his purchase of the company. The billionaire and the SEC now have one week to determine the time and place of testimony. If they fail, the court will decide for them.
The US Securities and Exchange Commission (SEC) started investigating Twitter’s (later rebranded to X) takeover by Elon Musk in 2022. The agency wants to find the reason behind Musk’s late disclosure of his initial Twitter stake. Before taking over the whole company, Musk bought 5% of Twitter shares. The move allowed him to purchase more shares without notifying other shareholders.
In December, US Magistrate Judge Laurel Beeler ruled that Musk should testify before the SEC, and the recent ruling forces the billionaire to comply. Musk has tried multiple times to evade testifying about his Twitter purchase.
A federal judge obligates Elon Musk to testify before the SEC
As per Reuters, the ruling came after Musk didn’t appear in his testimony meeting in September. And later didn’t even appear in a rescheduled interview. In response, Musk said he had done the interview two times, and even accused the SEC of harassment. He said the subpoena was issued by a staff member appointed by the SEC’s Director of Enforcement.
However, the judge rejected these claims and noted that the SEC has the authority to issue a subpoena. The SEC further claimed it had found some new documents related to Elon Musk’s purchase of Twitter and that he needs to answer some questions.
Elon Musk has faced multiple lawsuits and investigations since his bid to buy Twitter was accepted in October 2022. Since then, he has been sued multiple times by former employees, lawyers, and US government agencies over his way of governing the platform.
Musk and the SEC also had a brawl in 2018 when Musk tweeted “funding secured” after he decided to take Tesla private. The SEC later ordered Musk to consult with lawyers before tweeting about Tesla. The agency sued the billionaire in 2019 for breaching the agreement. As a result, Tesla paid $20 million in fines and Musk left his role as the company chairman. Elon Musk’s alleged use of drugs in private parties has also made shareholders rethink of his ability to run the company.