Elon Musk, the billionaire entrepreneur and CEO of companies like Tesla and SpaceX, is again in the regulatory spotlight.
The Securities and Exchange Commission (SEC) has taken legal action to compel Musk to sit for a deposition as part of an ongoing investigation into his acquisition of Twitter, which has been rebranded as ‘X.’
The SEC alleges that Musk failed to comply with a May subpoena that required him to provide testimony.
What adds to the controversy is that Musk had previously agreed to appear at the SEC’s office in San Francisco but waited until just two days before the scheduled date to inform regulators of his decision not to attend.
Consequently, the SEC is pursuing a court order to enforce Musk’s compliance with the subpoena.
Musk’s acquisition of Twitter in October 2022 for approximately $44 billion raised eyebrows and led to heightened scrutiny from regulatory bodies.
The SEC’s investigation is centered on potential violations of various provisions of federal securities laws, not only concerning Musk’s purchase of the social media platform but also regarding statements he made in the previous year and SEC filings related to Twitter.
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In a press release, the SEC explained that they are seeking Musk’s testimony to acquire information that is not already within their possession but is pertinent to their legitimate and lawful investigation.
It is important to note that the SEC has not concluded that any individual or entity has violated federal securities laws.
Musk, known for his outspoken presence on social media, responded to the SEC’s court order through a post on the newly named X platform.
In his post, he expressed his belief that a comprehensive overhaul of regulatory agencies is necessary.
He also established a commission tasked with taking punitive action against individuals who have allegedly abused their regulatory authority for personal and political gain.
This latest legal tussle between Musk and the SEC adds another chapter to their ongoing relationship.
In the past, Musk has faced SEC scrutiny for his tweets about Tesla, which led to accusations of market manipulation.
Ultimately, Musk settled with the SEC, agreeing to certain restrictions on his social media communications regarding Tesla.
As this investigation unfolds, it remains to be seen whether Musk will comply with the SEC’s demands or if this will result in further legal battles.
Regardless of the outcome, the case highlights the complex and often contentious relationship between high-profile individuals like Elon Musk and regulatory authorities overseeing financial markets and protecting investors’ interests.
Source: ABC News