SEC Sues Musk to Make Him Testify in Twitter Takeover Investigation

SEC Pressures Musk for Twitter Testimony

The SEC is seeking Elon Musk's testimony in its investigation into his Twitter purchase (now X). Musk bought the platform for $44 billion in October 2022, and the SEC is scrutinizing his pre-acquisition Twitter stock holdings. The regulator seeks to compel his testimony after he initially agreed but later raised objections. This adds to Musk's ongoing clashes with the SEC.

The investigation, launched in April 2022, aims to determine if Musk violated securities laws during his Twitter share purchases. It also examines his deal-related statements and filings, raising questions about proper documentation.

Before acquiring Twitter, Musk purchased a 9.2% stake in March and disclosed it in April. Subsequently, the SEC queried him about this significant stake.

Despite a May 2023 subpoena, Musk initially agreed to testify on September 15 but later objected, citing location issues. The SEC proposed alternative dates and locations, but Musk refused to attend.

Since the probe's start, the SEC has requested numerous documents from Musk. As of October 5, 2023, he has testified twice in July 2022. Musk's history with the SEC predates the Twitter case, as he faced previous investigations, including one related to Tesla's self-driving claims.

Musk called for a comprehensive overhaul of regulatory agencies and suggested a commission to penalize those who abuse regulatory power for personal and political gain.