The Securities and Exchange Commission is taking a stand against Elon Musk for failing to comply with a court order to appear for a deposition in connection with his 2022 Twitter acquisition. The SEC is investigating potential securities fraud related to Musk’s actions in 2022, including the sale of Tesla shares and the acquisition of a stake in Twitter before the X leveraged buyout.
Why is the SEC pursuing Musk for a deposition?
The SEC has ordered Musk to appear for a deposition regarding the Twitter deal, but Musk has failed to show up twice, once in September 2023 and again recently, defying both a subpoena and a court order. The SEC is now seeking sanctions against Musk for his non-compliance.
What action does the SEC want the court to take?
The SEC is asking the court to sanction Musk for his repeated failure to appear for the deposition. The agency intends to seek civil contempt charges against Musk for canceling a deposition on short notice, causing the SEC to incur additional time and costs.
What is Musk’s response to the SEC’s actions?
Musk’s attorney argues that sanctions against Musk would be inappropriate, citing ongoing cooperation with the SEC in other investigations. The deposition has been rescheduled for early October at an SEC office, but the SEC is concerned that Musk may continue to delay or fail to appear.
What other legal challenges is Musk facing?
In a separate civil lawsuit, the Oklahoma Firefighters Pension and Retirement System has accused Musk of concealing his investments in Twitter and his intention to buy the company, influencing other shareholders’ decisions. Correspondence from the lawsuit revealed discussions about Musk’s Twitter stock-buying strategy being closely held information.
In conclusion, the SEC is seeking sanctions against Elon Musk for failing to comply with a court order to appear for a deposition in the investigation of his 2022 Twitter acquisition. Musk’s legal troubles extend beyond the SEC probe, with additional challenges in a civil lawsuit related to his investments in Twitter.
