The US Securities and Exchange Commission (SEC) wants to force billionaire Elon Musk to testify in its investigation into his purchase of social media platform X, formerly known as Twitter.
In a new lawsuit, the regulatory agency says it has applied for an injunction ordering the business magnate to comply with a subpoena to testify – which he has so far ignored.
According to the SEC, Musk may have violated securities laws by purchasing Twitter in October 2022 for as much as $44 billion.
“If an individual or entity refuses to comply with a subpoena issued by SEC enforcement personnel pursuant to a formal investigative order, the Commission may file a subpoena in federal district court requesting an order enforcing compliance.
According to SEC staff filings in the U.S. District Court for the Northern District of California, the subpoena for Musk’s testimony relates to an ongoing investigation by the SEC regarding, among other things, possible violations of various provisions of the federal securities laws in connection with (a) Musk’s 2022 purchases of shares of Twitter, Inc., and (b) Musk’s 2022 statements and SEC filings regarding Twitter.
According to the filing, the SEC is seeking Musk’s testimony to obtain information not already in the SEC’s possession that is relevant to its legitimate and lawful investigation.
The SEC says that even though Musk agreed to testify in court and was issued an investigative subpoena to do so in September, he failed to appear and made several “false” objections.
Alex Spiro, Musk’s lawyer, told Reuters that Musk has already testified and does not need to do so again.
“The SEC has already reproduced Mr. Musk’s testimony multiple times in this misleading investigation – enough is enough.”
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