Elon Musk, the CEO of Tesla Inc., has been ordered to testify in the U.S. Securities and Exchange Commission’s (SEC) investigation into his $44 billion acquisition of X, formerly known as Twitter. The probe centers on whether Musk adhered to the law when reporting his Twitter stock purchases and if his statements about the deal were deceptive.
What Happened: A federal judge, Laurel Beeler, has mandated Musk to testify in the SEC’s inquiry into his 2022 Twitter acquisition, reported Reuters. The judge’s order, issued on Saturday, requires the SEC and Musk to agree on a date and location for the testimony within a week.
The SEC filed a lawsuit against Musk in October, seeking his testimony regarding his Twitter stock purchases and the subsequent rebranding of the platform to X. Musk refused to attend an interview in September, prompting the SEC to take legal action. Musk responded by calling for a comprehensive overhaul of the regulatory agencies.
Judge Beeler’s ruling in December, which favored the SEC, was formalized in her recent order. Musk’s argument against the SEC’s request for an interview was dismissed by Beeler, who stated that the SEC had the authority to issue the subpoena for relevant information.
If the SEC and Musk fail to agree on a date and time for the interview, Beeler will make the decision for them.
Why It Matters: The SEC’s lawsuit against Musk is the latest development in a series of legal battles between the billionaire and the regulatory body. Conflicts between the two initiated when the regulatory body filed a lawsuit against him for his tweet in 2018, stating “funding secured” in connection to a potential move to privatize Tesla. As part of the settlement, Musk agreed to have a Tesla lawyer review his tweets related to the electric vehicle company. However, the SEC took legal action against him once more in 2019, alleging a violation of that agreement.
Earlier, in December, the SEC sought also answers from Musk regarding his Twitter takeover, leading to a court showdown. Musk’s lawyers argued that the SEC’s actions amounted to harassment.
The current order for Musk to testify in the SEC’s Twitter probe adds another layer to the ongoing legal saga between Musk and the SEC.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
