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Elon Musk

SEC Requires Elon Musk’s Testimony on Twitter Acquisition

The saga between Elon Musk and the US Securities and Exchange Commission (SEC) continues as Musk faces a lawsuit aimed at compelling his testimony in an investigation regarding his $44 billion takeover of Twitter. The SEC is examining whether Musk violated federal securities laws in 2022 during the acquisition of Twitter, which he later renamed X. The investigation includes scrutiny of Musk’s stock purchase in Twitter, statements, and SEC filings related to the deal.

The SEC, in a court filing on October 5, revealed that it had subpoenaed Musk in May 2023, requesting testimony at its San Francisco office. Musk initially agreed to appear on September 15 but later raised objections, refusing to participate two days before the scheduled deposition. Musk objected, claiming harassment by the SEC and stating that his counsel needed time to review material from a recently published biography.

Musk, who has provided documents and previous testimony, rejected the SEC’s proposals for deposition in Texas in October or November. Alex Spiro, Musk’s attorney, stated, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”

The SEC, seeking Musk’s testimony to gather additional information, emphasized its legitimate and lawful investigation. Musk acquired Twitter after disclosing a significant minority stake in April 2022, facing delays in the filing of disclosure documents. The SEC and Musk have a history of conflicts, notably stemming from Musk’s 2018 tweet about taking Tesla private.

The latest legal battle adds to Musk’s challenges, with ongoing investigations by the Justice Department into Tesla’s self-driving claims and a separate inquiry related to Musk’s corporate perks and vehicle driving range claims.

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