The Daily Observer London Desk: Reporter- John Furner
A federal judge has ordered X owner Elon Musk to testify again before the Securities and Exchange Commission as part of its investigation into the billionaire’s acquisition of Twitter.
On Thursday, Judge Laurel Beeler of the Northern District of California did not issue a specific date for the testimony to take place, leaving both parties to figure it out for themselves. However, she did emphasize that if no decision could be reached, his testimony would take place in San Francisco in February.
Mr. Musk’s lawyers initially tried to get him out of any further questioning by the SEC by claiming that the agency did not have the authority to issue subpoenas, which Judge Beeler rejected. They also attempted to categorize the SEC’s investigation as “harassment” and get it dismissed, which Judge Beeler did not buy.
“You’ve got one more four-hour deposition, one more day of depositions to survive and it’s over,” she said Thursday. “It seems unlikely there’s going to be any more hassle.”
The decision is the latest in a years-long legal battle between the world’s richest man and the SEC.
The SEC opened a probe into Mr. Musk in April 2022 after he began posting about purchasing Twitter. He cooperated with the agency and even testified via video call in July. However, the SEC was not satisfied with Mr. Musk’s answers and asked him to testify again in September, a request he refused.
The SEC followed with a lawsuit in October against the billionaire to get him to answer their questions relating to his purchasing of Twitter, which he has since renamed X.
The SEC has indicated it is mostly interested in the lead-up to Mr. Musk purchasing the company and whether he followed the correct legal procedures and paperwork. They are also likely interested in how Mr. Musk financed the purchase and if statements he made about it are at all misleading.
