SEC accuses Elon Musk of distorting investigation into Twitter acquisition
The Securities and Exchange Commission (SEC) has accused tech mogul Elon Musk of misrepresenting the scope of their ongoing investigation into his acquisition of Twitter. In a court document, the SEC alleged that Musk is distorting the true nature of the probe to establish that they are not seeking relevant evidence. The accusations come amidst an ongoing dispute over Musk's refusal to testify in the probe, which has been underway since 2022.
Musk's delayed testimony stalls SEC investigation
The SEC has been probing Musk's delayed disclosure of his stake in Twitter, which was a publicly-traded company at the time. Despite a federal judge ordering Musk to comply with the subpoena and schedule an interview last month, the testimony is yet to happen. The SEC alleges that Musk is employing tactics to delay the investigation. The agency also contradicted claims from Musk's legal team that the probe is an "unbounded investigation into an allegedly days-late SEC filing."
Musk also under investigation for potential securities fraud
In addition to the Twitter takeover probe, the SEC has revealed that Musk is also under investigation for potential securities fraud. This secondary investigation pertains to possible violations of Section 10(b) of the Securities Exchange Act, specifically related to Musk's public statements about his Twitter acquisition. The SEC has not provided further details on this aspect of its ongoing inquiry into Musk's business dealings.
Musk's biography provides new evidence: SEC
The SEC has pointed to the recently published biography of Musk by Walter Isaacson as a source of 'newly released evidence' relevant to their investigation. The regulator notes that the book was published just three days before Musk failed to attend his scheduled testimony. This is not the first time Isaacson's account has been referenced in legal matters concerning Musk, with former executives also citing passages from the biography in their lawsuit over unpaid severance.
