Securities and Exchange Commission (SEC) is seeking a court order to make Twitter owner Elon Musk mandatory to testify in the investigation of acquiring Twitter. SpaceX and Tesla owner Elon Musk is accused of unlawfully acquiring Twitter now-X. Earlier, Musk was summoned to testify on September 15. He was sent an investigation subpoena from the Securities and Exchange Commission but the Tesla owner did not show up for testimony on the scheduled date. Therefore, the SEC is seeking a federal court order to force Elon Musk to testify in the Twitter acquisition case. Here is a lot more to know about this story. Keenly read the following sections to know everything that you need about it.
Elon Musk may testify in Twitter acquisition case
An investigation is currently going on into Elon Musk’s acquisition of Twitter which he has not renamed to X. He was sent an investigation subpoena by the Securities and Exchange Commission to appear in court and testify on September 15 but Musk failed to register his testimony in the case. Now the SEC is pursuing a court order to force Musk to testify. Therefore, the Securities and Exchange Commission filed an appeal in a federal court in San Francisco.
SEC stated, “Musk attempted to justify his refusal to comply with the subpoena by raising, for the first time, several spurious objections, including an objection to San Francisco as an appropriate testimony location,” While Elon Musk’s attorney Alex Spiro said that Mr. Musk already has testified multiple times in this investigation. Spiro stated, “SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation — enough is enough,” SEC claims it has been pricing together information on the time when the company was still publicly listed before Mr. Musk acquired Twitter in 2022. However, the SEC has not reached the conclusion of the investigation that anyone broke federal securities law.
Elon Musk’s Plea To Dismiss The Case, Rejected
Last week, Elon Musk’s plea to dismiss the case was rejected. US District Judge Andrew Carter expressed doubt about the reason that “Musk was somehow ‘too busy’ to comply with SEC disclosure rules about his ownership stake in Twitter, while simultaneously buying millions of shares of stock of Twitter, tweeting about the state of Twitter as a social media platform, and meeting with several Twitter executives and insiders”. However, the court rejected his plea to dismiss the investigation and part of the case alleging the actions amounted to insider trading.