Selloff or Market Correction? Either Way, Here's What to Do Next!See Overvalued Stocks

SEC sues Elon Musk in Twitter purchase probe

Published 05/10/2023, 22:34
© Reuters

Investing.com -- The U.S. Securities and Exchange Commission on Thursday sued Elon Musk to force him to provide testimony in the agency's probe into his purchase of Twitter last year. 

The SEC alleges that Musk failed to appear to provide testimony on a Sept. 15, and said that the filing of the subpoena, with the U.S. District Court for the Northern District of California, is "seeking a court order for Musk to comply with the subpoena."

In the complaint, lawyers for the SEC wrote that the "Musk's ongoing refusal was hindering and delaying" the agency's probe into whether federal securities laws were violated in the purchase of Twitter.

The lawsuit to force Musk to testify relates to an ongoing investigation by the SEC into potential violations of federal securities laws relating to Musk’s 2022 purchases of Twitter stock, and his 2022 statements and SEC filings relating to Twitter, according to the court filing. 

But the agency hasn't reached any conclusion yet whether federal securities laws were broken.

"The SEC staff is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws," according to the court filing.

The SEC alleges that Musk had previously raised no objection to a prior subpoena -- seeking further testimony that was issued in May 2023 -- until two days before his scheduled testimony date in September 2023, when he notified the SEC that he wouldn't appear.

The SEC alleges that Musk's refusal to comply with the request to provide further testimony was based on "several spurious objections."

"The SEC has already taken Mr. Musk's testimony multiple times in this misguided investigation - enough is enough," Reuters reported, citing a statement from Alex Spiro, an attorney for Musk.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.