U.S. SEC just sued Elon Musk: find out more

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on Oct 5, 2023
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  • SEC is trying to push Elon Musk into testifying over Twitter takeover.
  • The billionaire entrepreneur did not appear for a testimony last month.
  • SEC is investigating if securities fraud was involved in the Twitter purchase.

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The U.S. Securities & Exchange Commission (SEC) just sued billionaire Elon Musk to make him testify over his $44 billion buyout of Twitter.

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Elon Musk failed to comply with a subpoena

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Musk was served a subpoena in May that required him to take the stand last month.

But he refused to testify on September 15th – at one point even accusing the regulator of using the subpoena as an instrument to “harass” him.

“X” (formerly known as Twitter) is yet to respond to the lawsuit filed today with a U.S. District Court. Attorneys representing the Securities & Exchange Commission wrote in that complaint:

Musk’s refusal to comply with SEC’s administrative subpoena is hindering and delaying the SEC Staff’s investigation to determine whether violations of federal securities laws have occurred.

SEC allegedly tried its best to meet with Musk

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Note that the U.S. SEC allegedly offered to meet with Elon Musk at its office closest to the billionaire’s personal residence in Texas.

The regulator even proposed several dates for him to appear for a testimony in October and November – efforts that “met with Musk’s blanket refusal”, as per its lawyers.

The news arrives shortly after Sen. Elizabeth Warren urged the Securities & Exchange Commission in a letter to investigate the board of directors at Tesla Inc as well for possible damage to its shareholders that may have stemmed from its Chief Executive spending $44 billion to takeover Twitter (read more).

Elon Musk is no longer the top boss at Twitter. He handed over the reins to Linda Yaccarino – the former Head of Global Advertising at NBCUniversal in May.  

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