A judge has recently issued an order for Elon Musk to testify for the third time as part of the Securities and Exchange Commission's ongoing investigation into his $44 billion acquisition of Twitter in 2022, now known as X.
This development adds another layer of complexity to the case, raising questions about the scope and validity of the SEC's investigation.
SEC Subpoena Enforcement and Musk's Testimony
Despite claims that the testimony demanded by the Securities and Exchange Commission (SEC) is burdensome, Judge Beeler has upheld the enforcement of the SEC's subpoena. It is worth noting, however, that the SEC did offer Musk the option to testify in Texas, where he resides.
The SEC's ongoing fact-finding investigation revolves around the period leading up to Musk's acquisition of Twitter. This investigation specifically focuses on the time when Twitter was still a publicly traded company. It is important to emphasize that the SEC has not yet arrived at any conclusions regarding potential violations of federal securities laws during this period.
Musk has already testified twice in relation to this case. Nonetheless, as outlined in the judge's order, the SEC has recently received an abundance of new documents from various parties. Among these documents are hundreds submitted by Musk himself.
In October 2022, Musk successfully completed his $44 billion agreement to purchase Twitter. This achievement came after a protracted legal battle with the previous leaders of the social media giant. It is noteworthy that Musk initially attempted to back out of this deal after signing it in April 2022. As a result, Twitter filed a lawsuit against him, compelling him to proceed with the acquisition.
As of now, neither the SEC nor Musk's legal representative have responded to requests for comment made on Monday.