Sat. May 18th, 2024

Elon Musk, the world’s richest man, is facing a probe by the U.S. Securities and Exchange Commission (SEC) over his stock purchases on Twitter, according to court filings. The investigation revolves around allegations of securities law violations stemming from Musk’s acquisition of Twitter, which he renamed X, and related statements and filings. The SEC initially began looking into Musk’s disclosure of his stake in Twitter in May 2022, questioning whether the appropriate paperwork was filed.

In May 2023, the SEC subpoenaed Musk, requesting him to testify at their San Francisco office. Initially agreeing to appear on September 15, Musk later raised objections and informed the SEC that he would not attend. He also rejected alternative proposals to conduct the deposition in Texas. Among his objections, Musk claimed that the SEC was attempting to harass him and that his legal team needed time to review relevant material from a recently published biography.

According to court documents, Musk has already provided the SEC with documents pertaining to the investigation and previously gave testimony via video conference in July of the previous year. In response, Musk’s attorney, Alex Spiro, stated, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”

In a press release, the SEC stated that it was seeking Musk’s testimony to gather information relevant to its legitimate investigation. However, the SEC declined to comment further on the matter.

Musk initially acquired a large minority stake in Twitter, which he disclosed in April 2022. However, he was late with the filing and indicated that he intended to be a passive stakeholder without plans to influence Twitter’s management decisions. 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 but later attempted to withdraw from the deal, claiming that Twitter had withheld information regarding bot activity.

Despite facing legal action, Musk completed the acquisition of Twitter in late October 2022 after a trial compelled him to move forward with the transaction.

This latest dispute between Musk and the SEC adds to their ongoing feud that began in 2018 when Musk tweeted about taking Tesla private. Multiple probes have been initiated by the SEC into Musk’s actions since then. Musk has been critical of the SEC and called for a comprehensive overhaul of regulatory agencies.

Legal troubles continue to mount for Musk, as the Justice Department is reportedly investigating Tesla’s self-driving claims, and federal prosecutors in New York are looking into Musk’s corporate perks and claims related to vehicle driving range.

(Note: This article is published from a syndicated feed and has not been edited by NDTV staff except for the headline.)

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