Federal Judge Orders Elon Musk to Testify Again in SEC Probe of Twitter Takeover
In a recent development, a federal judge has ordered Elon Musk, the CEO of SpaceX, X (formerly known as Twitter), and Tesla, to testify again in the U.S. Securities and Exchange Commission’s (SEC) probe of his $44 billion takeover of Twitter. This order comes after the SEC sued Musk in October, seeking his testimony as part of an investigation into his 2022 purchase of Twitter, which he subsequently renamed X.
The SEC is examining whether Musk followed the law when filing the necessary paperwork regarding his purchases of Twitter stock and whether his statements about the deal were misleading. Musk had refused to attend an interview with the SEC in September, claiming that he had already been interviewed twice and accusing the regulator of harassment.
However, U.S. Magistrate Judge Laurel Beeler rejected Musk’s argument and sided with the SEC. In her ruling, she stated that the SEC had the authority to issue a subpoena for relevant information. As a result, Beeler has given both parties a week to agree on a date and location for Musk’s testimony. If they fail to reach an agreement, Beeler will step in and make the decision herself.
This is not the first time Musk has faced legal troubles with the SEC. In 2018, the regulator sued him after he tweeted “funding secured” in reference to a possible plan to take Tesla private. To settle that case, Musk agreed to have a Tesla lawyer review his tweets about the electric vehicle maker. However, the SEC sued him again in 2019, alleging that he had breached this provision.
Musk has taken his fight against the SEC to the U.S. Supreme Court, requesting a review of the agreement. He argues that it violates his constitutional right to free speech. The outcome of this request is yet to be determined.
The ongoing friction between Musk and the SEC highlights the challenges faced by high-profile CEOs in navigating the legal and regulatory landscape. As one of the most influential figures in the tech and automotive industries, Musk’s actions and statements have far-reaching consequences. The outcome of the SEC probe will undoubtedly have implications not only for Musk but also for the future of corporate governance and accountability.
As the SEC and Musk work to agree on a date and location for his testimony, all eyes will be on this high-stakes legal battle. The outcome could shape the future of how CEOs interact with regulators and the extent to which they are held accountable for their actions. Until then, the world will eagerly await the next chapter in this ongoing saga.