Zinger Key Points
- The SEC is suing Elon Musk after he failed to comply with a subpoena to testify on his Twitter purchase.
- The regulator launched the investigation to determine if securities fraud was committed by anyone involved.
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The U.S. Securities and Exchange Commission has filed suit against Tesla Inc TSLA CEO Elon Musk, calling on the billionaire to testify over his 2022 Twitter purchase.
The Details: The SEC sued Musk in a federal court in San Francisco on Thursday, claiming he failed to appear to provide testimony last month that he was subpoenaed for in May, per CNBC.
The regulator launched the investigation to determine if securities fraud was committed by anyone involved in Musk's Twitter takeover. Musk was reportedly buying shares of Twitter before he took it private in a $44 billion deal and transformed the social platform into X.
"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," attorneys representing the SEC said in the complaint.
The SEC noted that it attempted to meet with Musk multiple times, offering to convene on several different dates and even meet him at an office close to his personal residence, but a meeting never took place because Musk refused, citing various reasons including harassment.
"Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony," the complaint states.
As of now, the SEC "has not concluded that any individual or entity has violated the federal securities laws."
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