Elon Musk has been ordered to answer to a federal judge concerning his takeover of Twitter in an ongoing US Securities and Exchange Commission investigation into his $44 billion takeover of the social media platform.
In a follow-up to a preliminary ruling in December 2023, the SEC and the billionaire CEO of Tesla and SpaceX now have seven days to agree on a date for him to testify, otherwise, it will be decided for them.
As reported by Reuters, Musk previously refused to attend an interview in September as part of the overall probe of his acquisition of Twitter, which he later rebranded as X.
US Magistrate Judge Laurel Beeler sided with the regulator on that occasion after Musk’s dismissive action was prompted by claims of harassment. He insisted the subpoena was requesting irrelevant information, as well as undergoing two interviews, but that argument was rejected.
Ongoing dispute
The SEC is challenging whether Musk adhered to the correct legal process when filing the necessary paperwork for his purchase of Twitter and if he made misleading statements during the transaction. It is seeking further answers from the 52-year-old, who also argued the subpoena fell outside the SEC’s authority as it was issued by a staff member appointed by the SEC’s Director of Enforcement.
Beeler ruled the subpoena is valid, throwing out Musk’s claims which brings us to the latest stage of this legal saga. The Magistrate’s next action could be to hear both representations, to set a new hearing date, if they do not agree.
Musk has also taken additional action, asking the US Supreme Court for a review, citing his constitutional right to free speech following the December decree.
Tensions between the X supremo and the SEC commenced back in 2018 when the body sued him after he tweeted “funding secured” relating to a potential move to take Tesla private. Musk agreed to a Tesla lawyer vetting his tweets regarding the company, to settle the case, but he was sued again, the following year, for an alleged breach of the agreement.
The post “Elon Musk ordered to testify in Twitter takeover investigation” by Graeme Hanna was published on 02/12/2024 by readwrite.com