SEC Sues Elon Musk to Compel Testimony in Twitter Takeover Probe
The US Securities and Exchange Commission (SEC) has sued Elon Musk, the world’s richest man, in an effort to compel him to testify as part of an investigation into his $44 billion takeover of social media giant Twitter.
The SEC’s lawsuit was filed in federal court in San Francisco on Thursday. The agency alleges that Musk failed to comply with a subpoena to testify on September 15, 2023, as part of the investigation.
Musk reacted in Twitter as “Why is the SEC looking into my purchase of Twitter/X? Every day it’s something different. One week it’s the Biden Administration, another week it’s the SEC, and another week it’s someone else. I’m literally just trying to protect free speech, build electric cars, and put humans on Mars. Why don’t they like me?”
The SEC’s investigation is focused on whether Musk violated federal securities laws in his dealings with Twitter. Specifically, the agency is looking into whether Musk made false or misleading statements to investors about his plans for Twitter, and whether he properly disclosed his stake in the company.
Also Read: Elon Musk Reacts to Trump Mugshot on X
Musk has denied any wrongdoing. He has also said that he is cooperating with the SEC’s investigation. However, his failure to comply with the subpoena could lead to contempt of court charges.
The SEC’s lawsuit is the latest escalation in the agency’s long-running feud with Musk. In 2018, the SEC reached a settlement with Musk and Tesla over charges that Musk had misled investors about his plans to take the company private. As part of the settlement, Musk agreed to step down as Tesla’s chairman and pay a $20 million fine.
The SEC’s lawsuit against Musk could have significant implications for his Twitter takeover. If the agency finds that Musk violated securities laws, he could face civil or even criminal penalties. He could also be forced to give up his controlling stake in Twitter.
The outcome of the SEC’s lawsuit is also likely to be closely watched by investors and other tech giants. Musk’s Twitter takeover has been one of the most high-profile deals in recent years, and it has raised a number of questions about the regulation of social media companies.
The SEC’s lawsuit is a reminder that even the world’s richest man is not above the law. It also shows that the SEC is willing to take on powerful figures who it believes have violated securities laws.
Be the first to comment