26, February, 2024
HomeWorldElon Musk Ordered to Cooperate with SEC Inquiry on Twitter Stock Purchases

Elon Musk Ordered to Cooperate with SEC Inquiry on Twitter Stock Purchases

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A United States judge has issued a mandate requiring Elon Musk to comply with a subpoena, compelling him to address inquiries from regulatory authorities regarding his acquisitions of Twitter shares in the previous year.

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The directive follows Musk’s augmentation of his interest in Twitter—presently rebranded as X—prior to his acquisition of the company for $44 billion. However, Musk failed to attend a scheduled deposition in September with the Securities and Exchange Commission (SEC), as outlined in a legal document.

Judge Laurel Beeler of California, in a decision disclosed on Saturday and obtained by Media, sanctioned the SEC’s plea to enforce the subpoena. “The court grants the SEC’s application to enforce the subpoena,” stated the decision.

Both the billionaire CEO and the SEC have been allotted a week to mutually agree upon a suitable time and venue for Musk to provide testimony, the decision further elaborated.

The SEC’s investigation is multifaceted, encompassing all of Musk’s transactions involving Twitter stock in 2022, along with his declarations and submissions to market regulators, court records revealed.

Musk had participated in two half-day depositions with the SEC in July. Subsequently, the commission informed the court that it had received “thousands of documents” raising pertinent queries necessitating Musk’s elucidation.

Among Musk’s objections to the recent deposition was an allegation that the SEC was employing its authority to “harass” him, as stated in the filing by the commission.

Musk’s attorney Alex Spiro asserted, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation—enough is enough.”

Conversely, the SEC contended that “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,” according to court documents.

Musk’s involvement with the social media platform has been marred by numerous controversies, resulting in various legal ramifications from investors, former employees, and companies with contractual ties to Twitter.

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For instance, shareholders have initiated legal action against Musk, alleging that he divulged his five percent stake in Twitter belatedly, following the deadline set by the SEC.

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