A JUDGE HAS DIRECTED ELON MUSK TO COLLABORATE WITH REGULATORS IN THE TWITTER/X INVESTIGATION.
A judge in the United States has mandated that Elon Musk must adhere to a subpoena compelling him to respond to inquiries from regulators regarding his acquisitions of Twitter shares last year.
This directive follows Musk’s failure to attend a scheduled deposition with the Securities and Exchange Commission (SEC) in September. Musk had augmented his holdings in Twitter, now referred to as X, before ultimately purchasing the company for $44 billion.
In a legal filing, the decision by California judge Laurel Beeler, published on Saturday and obtained by AFP, stated, “The court grants the SEC’s application to enforce the subpoena.”
Both the billionaire CEO and the SEC are given a week to agree on the timing and location for Musk to provide testimony.
The SEC investigation encompasses all of Musk’s Twitter stock acquisitions in 2022, as well as his statements and submissions to market regulators, according to court documents.
In July, Musk participated in two half-day depositions with the SEC, which informed the court that it has received “thousands of documents” raising questions that they want him to address.
Musk’s objections to the recent deposition included an allegation that the SEC is employing its authority to “harass” him, as per the commission’s filing.
“The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation — enough is enough,” responded Musk’s attorney, Alex Spiro, to an AFP inquiry.
However, the SEC contended that “Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred,” according to court documents.
Musk’s involvement with the social network has been marred by numerous controversies, resulting in various legal actions from investors, former employees, and companies with contracts with Twitter.
For instance, shareholders have filed a lawsuit against Elon Musk, alleging that he disclosed his five percent stake in Twitter too late, after the SEC-set deadline. (Vanguard)
News Source: Techeconomy
