SEC launches investigation into Elon Musk’s purchase of Twitter.

The SEC has initiated an investigation into Elon Musk's acquisition of Twitter, focusing on potential violations of federal securities laws. This inquiry centers on the purchase and Musk's related statements and filings.

SEC launches investigation into Elon Musk’s purchase of Twitter.

Elon Musk, the CEO of SpaceX and Tesla, is facing a new legal battle as the U.S. Securities and Exchange Commission (SEC) is suing him to force him to testify in a probe regarding his $44 billion takeover of Twitter. The SEC launches an investigation into whether Elon Musk violated federal securities laws in 2022 when he acquired shares in Twitter, subsequently renaming it X, and the statements and filings he made in connection with the transaction.

According to court filings, the SEC issued a subpoena to Musk in May 2023, requiring him to provide testimony at their San Francisco office. Initially, Musk agreed to appear on September 15th, but two days before the scheduled testimony, he raised objections and refused to attend. Among his complaints was the claim that the SEC was trying to harass him and that his counsel needed time to review potentially relevant material from a recently published biography.

In response, the SEC stated that they had taken Musk’s testimony multiple times and were seeking his testimony to obtain new information relevant to their investigation. The SEC has not provided further comments on the matter.

This legal dispute is the latest episode in a long-standing feud between Musk and the SEC. It began with Musk’s infamous tweet in 2018, claiming he had secured funding to take Tesla private. Since then, the SEC has initiated multiple investigations into Musk’s actions and statements.

Musk’s acquisition of Twitter started with him building a large minority stake in the social media platform, which he disclosed in April 2022. However, he initially indicated that he intended to be a passive stakeholder. Shortly after, Musk accepted and then declined a board seat at Twitter. In late April, he announced his plans to acquire the company for $44 billion. Still, he later attempted to back out, alleging that Twitter was not transparent about bot activity on its platform. Despite legal challenges, Musk completed the acquisition in October 2022.

This lawsuit adds to Musk’s ongoing legal troubles, as he is already under investigation by the Justice Department for self-driving claims made by Tesla. Federal prosecutors in New York are also looking into Musk’s corporate perks and claims related to vehicle driving range.

Musk’s refusal to appear for testimony in September is highly unusual, with legal experts noting that it is rare for a senior executive with positions at public companies to avoid appearing before regulatory agencies. As the legal battle intensifies, Musk’s statements and actions will continue to be scrutinized by regulators and legal authorities.

Elon Musk is facing a lawsuit from the SEC, which is trying to compel him to testify in an investigation into his takeover of Twitter. This latest legal battle adds to Musk’s ongoing disputes with regulatory authorities, as he faces scrutiny over his actions and statements. The outcome of this case will have implications for Musk’s reputation and potentially impact his position as CEO of SpaceX and Tesla.

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