Elon Musk sued by SEC over Twitter probe non-compliance.
The Securities and Exchange Commission Takes Legal Action Against Elon Musk
The Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, aiming to compel his testimony in an investigation into potential financial misconduct related to his $44 billion purchase of X, formerly known as Twitter.
The suit was filed in the Northern District of California, and the SEC is specifically looking into whether Musk violated securities laws during the October 2022 acquisition of X. According to the filing, Musk was summoned to testify last month but failed to appear in San Francisco.
“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,”
The SEC claims that despite offering alternative meeting times and dates, Musk rejected all of them. As a result, the agency has turned to the courts for resolution.
Musk’s Ongoing Legal Battles
Elon Musk has been entangled in multiple lawsuits related to his acquisition of Twitter. In the most recent case, a court ordered Musk to cover the legal fees of several former Twitter executives.
This is not the first time Musk has faced legal action from the SEC. In 2018, he settled a lawsuit with the agency regarding tweets he made about Tesla’s stocks.
For more information, click here to visit The Washington Examiner.
What is the purpose of the Securities and Exchange Commission’s lawsuit against Elon Musk?
The Securities and Exchange Commission (SEC) has initiated legal action against Elon Musk, the CEO of various tech companies including Tesla and SpaceX. The lawsuit aims to compel Musk’s testimony in an investigation into potential financial misconduct related to his $44 billion purchase of X, formerly known as Twitter.
The suit was filed in the Northern District of California, where the SEC is specifically looking into whether Musk violated securities laws during the October 2022 acquisition of X. According to the filing, Musk was summoned to testify last month but failed to appear in San Francisco.
In response to Musk’s refusal to comply with the subpoena, the SEC stated that Musk attempted to justify his decision by raising several objections, including questioning San Francisco as an appropriate location for testimony.
The SEC claims that despite offering alternative meeting times and dates, Musk rejected all of them. Consequently, the agency has resorted to seeking resolution through the courts.
This is not the first time Elon Musk has found himself embroiled in legal battles related to his business dealings. In the most recent case, a court has ordered Musk to cover the legal fees of several former Twitter executives.
Furthermore, Musk has previously faced legal action from the SEC in 2018. He settled a lawsuit with the agency over tweets he made about Tesla’s stocks, which were deemed misleading and potentially manipulative.
For more information, please visit The Washington Examiner’s website.
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