Federal Judge Orders Elon Musk to Testify Again in SEC Investigation

A federal judge has ruled in favor of the Securities and Exchange Commission (SEC), instructing billionaire Elon Musk to appear once again for testimony regarding his 2022 purchase of Twitter.

Musk has already testified twice in this matter, but he failed to attend a third session, challenging the legitimacy of the SEC's demands, claiming that they were unreasonable and amounted to harassment.

No response has been provided by Musk's attorney at the time of writing.

While Musk initially provided testimony in July 2022, the SEC has pursued further questioning following the submission of "thousands of new documents" subsequent to his previous appearances. The SEC aims to inquire about this additional information obtained after Musk's initial testimony.

The judge has ordered both parties to engage in discussions within a week to determine a suitable date and location for the forthcoming testimony. Should they fail to reach an agreement, they may submit a joint letter summarizing their respective positions, allowing the court to settle the dispute on their behalf.

SEC Investigating Elon Musk for Possible Civil Fraud

The Securities and Exchange Commission (SEC) is currently conducting an investigation into whether Elon Musk, CEO of Twitter (now called X), committed civil fraud by failing to disclose his plans for the social media platform. According to court filings, Musk purchased shares of Twitter between January and April 2022 without disclosing his intentions.

Initially, when Musk reported his share purchases, he claimed to be a passive investor with no intention of taking control or exerting influence over Twitter. However, he later revealed that he had been invited to join the company's board, and subsequently offered to acquire Twitter for a staggering $44 billion. The acquisition was completed in October 2022.

Musk was slated to provide testimony in relation to the SEC's investigation on September 15, but he failed to appear. In response, the SEC suggested meeting with Musk in Fort Worth, Texas, which is closer to his residence in Austin. However, Musk declined the offer, leading the SEC to express frustration at his refusal to cooperate.

In a letter to the SEC, Musk's legal representatives dismissed the investigation as "frivolous," labeling the agency's numerous document requests and demand for additional testimony as "troubling government action." Despite the SEC's request for Musk to reconsider his decision to avoid testifying, he did not respond.

The SEC's investigation into Elon Musk's potential civil fraud continues.