Regulator sues Musk to force testimony in X probe
In a recent turn of events, financial regulators in the US have filed a lawsuit against Elon Musk, the billionaire entrepreneur, in an effort to force him to testify in an ongoing investigation into his purchase of Twitter, now known as X. The Securities and Exchange Commission (SEC) has requested that Musk comply with their request for a third session of testimony, to which Musk’s lawyer responded stating that he refuses to appear, calling the SEC’s actions “harassment”. This lawsuit marks the latest clash between the SEC and Musk, who has previously expressed his disdain for the regulatory agency. The SEC initiated its investigation into Musk’s $44 billion purchase of X last year, examining whether his stock purchases and public statements violated securities laws. Musk had already participated in two video conference testimonies in July, but the SEC asserts that another session is necessary due to new evidence.
Regulator sues Musk to force testimony in X probe
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Background
Financial regulators in the US have filed a lawsuit against Elon Musk, accusing him of refusing to cooperate with their investigation into his purchase of Twitter, now known as X. The Securities and Exchange Commission (SEC) has asked a federal court to order Musk to comply with their request for a third session of testimony regarding the deal. This legal action comes after the receipt of a letter from Musk’s lawyer, stating that he would not appear as requested and accusing the SEC of harassment.
SEC asks court to order Musk to comply
The Securities and Exchange Commission (SEC) has taken legal action against Elon Musk, requesting a court order to compel him to provide testimony in relation to their investigation into his purchase of X. The SEC accuses Musk of not sitting for a third session of testimony, and thus seeks the court’s intervention to enforce compliance.
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Musk’s lawyer accuses SEC of harassment
Musk’s lawyer, Alex Spiro, has written a letter to the SEC in which he accuses the Commission of harassment. In the letter, Spiro refuses to acquiesce to the SEC’s demands and argues that unchecked government action is dangerous. He expresses concern over the agency’s incursions and emphasizes Musk’s refusal to appear as demanded.
Investigation into Musk’s purchase of X
The SEC has launched an investigation into Elon Musk’s $44 billion purchase of X. They are examining his stock purchases and statements made in relation to the deal to determine whether any securities laws were violated.
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Musk participates in initial testimony
Elon Musk provided two half-days of testimony via video conference in July. This testimony took place after the SEC subpoenaed Musk in relation to their investigation. However, the SEC now claims that another session of testimony is necessary due to the significant amount of case documents that came in after the initial testimony.
SEC seeks another session of testimony
The SEC is requesting that Musk sit for a third session of testimony. According to the agency, nearly half of the case documents were received after the initial testimony, and they believe that another session is essential to complete their investigation.
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Musk’s lawyer questions the need for more time
In a letter to the SEC, Musk’s lawyer questions the agency’s justification for requiring additional time. The lawyer argues that it is unclear why the staff needs further time and asserts that this diverts Musk from his important obligations to his companies and shareholders. The letter emphasizes that enough is enough and questions the necessity of prolonging the investigation.
Previous feuds between Musk and SEC
This lawsuit is not the first instance of a dispute between Musk and the SEC. In the past, Musk publicly declared that he had “no respect” for the regulator. Additionally, in 2018, the SEC charged Musk with defrauding investors after he claimed on Twitter that he had secured funding to take Tesla private. Musk eventually reached a settlement with the SEC, which included his resignation as chairman of Tesla’s board and restrictions on his Twitter usage.
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Recent legal battles over Twitter restrictions
Musk has been involved in legal battles to have the restrictions on his Twitter usage removed. He has filed motions challenging these restrictions and has gone to court multiple times to have them lifted. The most recent court battle over Twitter restrictions occurred in February.
In conclusion, the SEC’s lawsuit against Elon Musk is the latest development in an ongoing feud between Musk and the regulator. The SEC is seeking to force Musk to comply with their investigation into his purchase of X, while Musk’s lawyer accuses the SEC of harassment. This legal battle follows previous disputes between Musk and the SEC, including a settlement over fraud charges and ongoing conflicts over Twitter restrictions. The outcome of this lawsuit will determine the extent to which Musk is compelled to testify and cooperate with the SEC’s investigation.
Source: https://www.bbc.co.uk/news/business-67024538?at_medium=RSS&at_campaign=KARANGA
