SEC Seeks Court Order to Compel Elon Musk’s Testimony in Twitter Takeover Investigation
The U.S. Securities and Exchange Commission (SEC) has filed a motion in federal court to compel Elon Musk, CEO of Tesla, to testify in its investigation into his $44 billion takeover of social media giant Twitter. This marks the third time the SEC has taken legal action against Musk, with the previous cases related to his tweets about taking Tesla private.
Legal experts believe that the SEC is on solid ground in this case, as the law clearly grants the agency the power to demand investigative testimony and gather documents. Former SEC officials have stated that this case is different from previous encounters between the SEC and Musk, as it focuses on enforcing a subpoena.
If Musk fails to comply with the court order, he may face fines and, in extreme cases, potential jail time. The SEC is investigating whether Musk violated securities laws in 2022 when he purchased stock in Twitter, which he later renamed X. Musk had previously provided documents and testified via videoconference for the SEC’s investigation, but the agency later received new information and issued a subpoena for Musk to testify again.
Musk objected to the SEC’s demands, claiming harassment and requesting more time to review relevant material from a recently published biography. However, legal experts note that it is not uncommon for federal agencies to seek additional testimony as investigations progress.
The SEC’s move to enforce the subpoena is supported by previous court rulings that upheld the agency’s rights. In similar cases, courts have compelled individuals, including musician Jay-Z, to testify after ignoring SEC subpoenas.
While Musk’s attorney argues that the investigation is misguided, legal experts believe that the court is likely to order Musk to provide additional testimony. The court will focus on whether the SEC has reasonably accommodated Musk’s schedule and logistical considerations.
Despite Musk’s ongoing disputes with the SEC, the court is expected to prioritize the agency’s legitimate efforts to obtain information. Legal professionals interviewed by Reuters believe that Musk’s resistance is unlikely to succeed in this battle.
The SEC has previously opened other investigations into Musk’s actions, and the ongoing feud between the world’s richest man and the powerful securities regulator continues to attract attention. However, the focus remains on the current case and the SEC’s efforts to ensure compliance with its investigative demands.
In conclusion, the SEC’s request to compel Elon Musk’s testimony in the Twitter takeover investigation highlights the ongoing legal battle between Musk and the regulatory agency. Legal experts believe that the SEC is on solid ground, and the court is likely to order Musk to provide additional testimony. The outcome of this case will shed further light on the relationship between Musk and the SEC, as well as the extent of regulatory oversight in the business world.