Background
A federal judge in San Francisco has tentatively ruled that billionaire Elon Musk must testify again for the U.S. Securities and Exchange Commission’s (SEC) investigation into his $44 billion takeover of Twitter. The SEC sued Musk in October to compel him to testify as part of their probe into his acquisition of the social media giant, which he subsequently renamed X.
Judge’s Decision
During the hearing, U.S. Magistrate Judge Laurel Beeler dismissed arguments by Musk’s attorney that SEC officials lack the authority to issue subpoenas. Judge Beeler stated that the agency has broad investigative powers and that no judge would question an SEC probe. She ordered Musk and the SEC to agree on a date for his testimony, or she would set one herself.
“You’ve got one more four-hour deposition, one more day of depositions to survive, and it’s over. It seems unlikely there’s going to be any more hassle,” Judge Beeler remarked.
Nature of the Investigation
The SEC is examining whether Musk complied with the law when filing required paperwork with the agency regarding his Twitter stock purchases. Additionally, they are investigating whether his statements related to the deal were misleading. The SEC has been investigating Musk’s Twitter takeover since April 2022 when he initially disclosed his stock purchase.
History of Conflict
This court hearing is the latest development in a longstanding feud between Elon Musk and the SEC. The feud dates back to 2018 when Musk tweeted about having “funding secured” to take Tesla private. Musk refused to attend an interview with the SEC in September, prompting their lawsuit.Musk’s lawyers have accused the SEC of harassment in their pursuit of him, while the SEC maintains its legal authority to seek additional testimony during evolving investigations.
Conclusion
Elon Musk, the world’s richest person, will need to submit to another deposition as part of the SEC’s investigation. The judge has called for cooperation between Musk and the SEC to schedule the deposition, emphasizing that this will be the final round of questioning.