A federal judge has issued a formal order requiring Elon Musk to testify once more in the ongoing probe conducted by the US Securities and Exchange Commission (SEC) into his acquisition of Twitter for $44 billion.
US Magistrate Judge Laurel Beeler finalized her December tentative ruling, granting the SEC’s request for Musk’s testimony. The judge has given both the SEC and Musk one week to agree on the date and location for the interview.
The SEC initiated legal action against Musk in October, seeking to compel the Tesla and SpaceX CEO to provide testimony regarding his 2022 purchase of Twitter, which he later renamed X.
Elon Musk (Credits: The Economic Times)
Musk had refused to participate in an interview related to the probe in September, prompting the SEC’s lawsuit. The investigation focuses on whether Musk adhered to legal requirements when filing the necessary paperwork for his Twitter stock acquisitions and whether his statements regarding the deal were accurate.
In response to the SEC’s attempt to interview him, Musk contested the move, arguing that the regulator had already conducted two interviews and accused them of harassment. However, Judge Beeler rejected Musk’s argument, stating that the SEC had the authority to issue the subpoena for relevant information.
If Musk and the SEC fail to reach an agreement on the interview date and time, Judge Beeler has indicated that she will hear from both parties and make a decision on their behalf.
The conflict between Musk and the SEC originated from a tweet Musk posted in 2018, stating “funding secured” in connection to a potential plan to take Tesla private.
The SEC sued Musk, leading to a settlement where Musk agreed to have a Tesla lawyer review his tweets about the electric vehicle company. In 2019, the SEC filed another lawsuit, alleging that Musk had violated this provision.
Musk has taken the matter to the US Supreme Court, seeking a review of the agreement, claiming that it infringes on his constitutional right to free speech. The ongoing legal battles underscore the ongoing tensions between Musk and the regulatory body.
