US federal court orders Musk to testify again in Twitter takeover probe
The SEC sued Musk in October to compel him to testify after he refused to attend an interview for the investigation, claiming harassment by the SEC.
A federal court has ruled that Elon Musk must testify again in the US Securities and Exchange Commission’s investigation into his $44 billion acquisition of Twitter. The SEC filed a lawsuit against Musk in October after he declined to attend an interview for the investigation, accusing the agency of harassment through multiple subpoenas.
The investigation revolves around whether Musk violated federal securities laws in 2022 when he purchased stock in Twitter, subsequently renamed X. It also examines statements and SEC filings made by Musk regarding the deal. US Magistrate Judge Laurel Beeler previously ruled in favour of compelling Musk’s deposition, a decision upheld by US District Judge Jacqueline Scott Corley.
Why does it matter?
This development is the latest episode in an ongoing feud between Musk and the SEC, dating back to 2018 when Musk tweeted about having ‘funding secured’ to take Tesla private. Musk provided documents to the SEC for its investigation in 2022 and testified via videoconference for two half-day sessions in July of that year. The SEC, however, expressed the need for further questioning after receiving new documents, leading to the court’s decision to compel Musk’s testimony once again.
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