Musk refused to testify in Twitter stock probe, claimed SEC is harassing him
After being sued by SEC, Musk says he wants US regulators to be punished.
The US Securities and Exchange Commission sued Elon Musk yesterday, alleging that he refuses to appear for testimony in an investigation into whether he violated federal law with his purchases of Twitter stock. The SEC asked a federal court to force Musk to testify “as required by the investigative subpoena.”
“The subpoena with which Musk failed to comply relates to an ongoing nonpublic investigation by the SEC regarding whether, among other things, Musk violated various provisions of the federal securities laws in connection with (1) his 2022 purchases of Twitter stock, and (2) his 2022 statements and SEC filings relating to Twitter,” the SEC alleged in its lawsuit in US District Court for the Northern District of California.
The SEC told the court it “seeks Musk’s testimony to obtain information not already in the SEC’s possession that is relevant to its lawful investigation. The SEC has followed all appropriate administrative steps required in seeking Musk’s testimony. In the face of Musk’s blatant refusal to comply with the SEC’s subpoena, the SEC now asks the Court to intervene and compel Musk’s compliance.”
The SEC began its investigation in April 2022 after Musk acquired a 9 percent stake in Twitter and failed to disclose it within 10 days as required under US law. A separate, ongoing class-action lawsuit alleges that Musk’s late disclosure caused investors to sell Twitter stock at artificially low prices. Musk’s stock purchases occurred shortly before he struck a deal to buy Twitter outright.
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