Musk Fights SEC Harassment: Elon Musk is pushing back against the U.S. Securities and Exchange Commission (SEC) as he seeks to avoid testifying in the agency’s investigation of his $44 billion takeover of Twitter. Musk filed his objections in a San Francisco federal court, where the SEC had previously sued him to compel his testimony.
According to Musk’s legal team, the SEC’s subpoena goes beyond its investigative authority, poses an undue burden, and seeks irrelevant evidence. The investigation centers on Musk’s 2022 Twitter stock purchases, his statements, and SEC filings regarding Twitter, which he later renamed X.
Musk’s attorney, Alex Spiro, has criticized the SEC’s investigation as “misguided.” In the recent court filing, Spiro and Musk’s legal team claimed that the SEC’s pursuit has turned into harassment. The SEC, on the other hand, argues that it is well within its authority to seek additional testimony from Musk, citing new documents obtained in the investigation since Musk’s last interview.
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The probe began after Musk revealed his acquisition of a 9.2% stake in Twitter in April 2022, 11 days after the SEC’s disclosure deadline. Initially, he portrayed himself as a passive stakeholder but later announced plans to acquire Twitter for $44 billion, attempting to back out of the deal later by alleging that Twitter had not fully disclosed bot activity on its platform. Despite legal battles, Musk eventually completed the acquisition in October 2022.
Musk has already provided documents and testified via video conference in July of the previous year. Still, the SEC believes it has further questions after reviewing the documents, issuing multiple subpoenas during the investigation. This legal battle is the latest chapter in the contentious relationship between the SEC and Musk, who has accused the agency of relentless investigations into him and Tesla.
Musk intends to seek a U.S. Supreme Court review of his SEC settlement, which mandates the vetting of certain social media posts with a Tesla lawyer. This ongoing feud highlights the enduring friction between Musk, the world’s wealthiest individual, and the U.S. market regulator.
Our Reader’s Queries
What is the SEC complaint about Tesla?
The complaint against Tesla made several accusations regarding the company’s financials and business practices. It claimed that Tesla had been misclassifying repairs for years and lacked proper control over internal systems used to capture business data. These systems ultimately contribute to the company’s financial and other disclosures.
Why does Elon Musk not like the SEC?
My lack of respect for the SEC is no secret. They sued me for sending tweets that they deemed “misleading” and caused market disruption. One tweet in particular, where I mentioned the possibility of taking Tesla private at $420 and claimed to have secured funding, was the subject of their allegations. However, I stand by my words and maintain that the SEC’s accusations are unfounded.
Did Elon Musk file suit against media matters?
Last week, Musk filed a lawsuit against Media Matters, a progressive watchdog, claiming that the company misrepresented how content appears on X (formerly known as Twitter). According to Musk’s attorneys, Media Matters made it seem as though the content was representative of what typical X users experience on the platform.
What legal issues does Tesla face?
Recently, Tesla has come under scrutiny from California’s attorney general for misleading advertising and safety concerns. Additionally, the Department of Justice requested information from the company regarding its Autopilot software in the past year.