A federal court in California has enforced a subpoena for Elon Musk to testify before the US Securities and Exchange Commission (SEC) regarding potential violations of federal securities laws in connection with his purchase of Twitter. The court ruled that the evidence gathered is relevant and material to the SEC’s investigation, and the testimony required of Musk is not unduly burdensome.
Musk had previously testified before the SEC twice in half-day sessions in July of 2022. However, the agency has since received “thousands of new documents” from various parties, including some authored by Musk, and wants to ask him about new information. Musk’s counsel initially agreed to testify last September but later requested to postpone the meeting by one day and eventually refused to appear.
The SEC is specifically seeking information about Musk’s purchases of Twitter stock ahead of the company’s acquisition. Musk, who is the CEO and co-founder of Tesla, refutes the grounds for the SEC’s investigation, calling it baseless and claiming that it seeks irrelevant information.
Furthermore, Musk argues that the subpoena exceeds the SEC’s authority because it was issued by an SEC staffer appointed by the agency’s director of enforcement, rather than by an officer appointed by the president, a court, or the head of a federal department. However, the court denied this argument, stating that the subpoena is authorized by the Exchange Act.
This latest development adds to the ongoing legal battles surrounding Musk and his business ventures. Just recently, Musk expressed his frustration over a $55 billion Tesla pay ruling and decided to switch Neuralink incorporation from Delaware to Nevada.
The court has ordered both parties to meet within one week and decide on a date and location for Musk’s testimony. It remains to be seen how this legal proceeding will unfold and what impact it will have on Musk’s reputation and business endeavors.
In conclusion, Elon Musk has been subpoenaed by the SEC to testify regarding potential securities violations related to his purchase of Twitter. The court has enforced the subpoena, ruling that the evidence gathered is relevant to the investigation. Musk, however, disputes the grounds for the investigation and argues that the subpoena exceeds the SEC’s authority. This latest development adds to the ongoing legal challenges faced by Musk and his businesses. The court has ordered both parties to determine a date and location for Musk’s testimony.
