SEC Sues Musk To Compel Testimony On Buying Twitter

October 5, 2023 Business, Social Media

Reuters reports:

Billionaire Elon Musk is under investigation by the U.S. Securities and Exchange Commission over his 2022 purchase of social media giant Twitter, according to a Thursday court filing in which the agency sought to compel Musk to provide testimony. The investigation concerns whether Musk broke federal securities laws in connection with his 2022 purchases of stock in Twitter, which Musk renamed X, as well as statements and SEC filings he made in relation to the deal.

The SEC said it subpoenaed Musk in May 2023 requiring him to provide testimony at the SEC’s San Francisco office, and that Musk had agreed to appear last month. But then two days beforehand Musk raised “several spurious objections” and told the SEC he would not appear, the SEC said. Musk also refused to SEC proposals to conduct the deposition in Texas in October or November.

But wait, there’s more.

Fox Business reports:



A federal judge has denied billionaire Elon Musk’s request to dismiss a proposed class-action lawsuit alleging he defrauded Twitter investors before buying the company last year. In a decision released Monday, U.S. District Judge Andrew Carter said Musk must face a lawsuit from shareholders who sold Twitter securities while Musk allegedly concealed his ownership stake in the company.

The complaint concerns Musk’s failure to disclose a 5% ownership stake in Twitter for 11 days past a U.S. Securities and Exchange Commission deadline. Shareholders led by an Oklahoma firefighters pension fund said Musk saved more than $200 million by adding to his Twitter stake and quietly talking with its executives about his plans before finally disclosing a 9.2% stake in April 2022.

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