The U.S. Securities and Exchange Commission sued Elon Musk on Thursday in an effort to compel the billionaire to testify over his buy of Twitter final yr.
Attorneys representing the SEC alleged in a grievance filed within the Northern District of California that Musk failed to look for a Sept. 15 testimony as required by a subpoena, which the attorneys mentioned was served to the Tesla CEO in May 2023.
Broadly, the SEC mentioned the investigation is tied as to if anybody dedicated securities fraud in buying Twitter shares final yr as Musk was shopping for inventory within the firm. Musk closed his acquisition of Twitter, now often called X, in October in a deal price roughly $44 billion.
“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,” the attorneys wrote within the grievance. “Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony.”
The SEC mentioned it tried to search out an agreeable time and place to satisfy with Musk, together with providing to satisfy him on the company’s workplace in Fort Worth, Texas, “the closest SEC office to Musk’s current personal residence” within the Austin space. Multiple dates have been proposed for October and November of this yr.
“These good faith efforts were met with Musk’s blanket refusal to appear for testimony,” the swimsuit says.
A spokesperson for X did not instantly reply to a request for remark.
Lawyers for the SEC allege that Musk refused to adjust to the subpoena due to “several spurious objections, including an objection to San Francisco as an appropriate testimony location.” Musk had beforehand raised no objection to that location.
Additionally, the SEC attorneys declare that Musk believed that the fee was utilizing the subpoena as a technique to “harass” him, thus justifying his determination to not comply.
The SEC mentioned in an announcement that its “staff is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.”
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