Elon Musk challenges SEC subpoena in Twitter investigation
Elon Musk has urged a US federal judge not to force him to testify in the Securities and Exchange Commission's (SEC) probe into his $44 billion (roughly Rs. 3.66 lakh crore) acquisition of social media platform Twitter, now X. Musk submitted his opposition in a San Francisco federal court, where the SEC filed a lawsuit against him on October 5, seeking his testimony for the investigation initiated in April 2022.
SEC's subpoena exceeds investigative authority
Musk's legal team contends that the SEC's subpoena goes beyond the agency's investigative powers, is excessively burdensome, and requests "irrelevant evidence." The SEC has been examining Musk's 2022 Twitter stock purchases, his statements, and SEC filings related to Twitter. Musk declined to participate in a September interview for the investigation. Alex Spiro, one of Musk's attorneys, has labeled the probe "misguided."
Musk's lawyer accuses SEC of 'harassment'
In their submission, Spiro and other lawyers representing Musk asserted that "The SEC's pursuit of Mr. Musk has crossed the line into harassment." The SEC did not immediately reply to Reuters' s requests for comment. The agency has previously stated that it is well within its rights to request further testimony from Musk and that it has obtained new documents in the investigation since last speaking with him.
Timeline of Musk's acquisition of Twitter
On April 4, 2022, Musk revealed he had bought a 9.2% stake in Twitter, 11 days after the SEC's deadline for such disclosures. Initially intending to be a passive investor, he later unveiled plans to purchase Twitter for $44 billion. Musk subsequently attempted to back out of the deal, claiming Twitter had not fully disclosed bot activity on its platform. After being sued to finalize the transaction, Musk completed his acquisition of Twitter in late October 2022.
SEC's ongoing investigation and Musk's previous testimony
The SEC has issued 32 subpoenas in the probe and has collected testimony from Musk and at least three other individuals on seven occasions. Musk alone has been served with five subpoenas for documents and another three for testimony. The SEC mentioned in a court filing that Musk testified via video conference in July last year, but SEC lawyers have additional questions for Musk after reviewing the documents.
