Musk
Musk

Musk to testify in SEC’s Twitter probe

What To Know

  • Reuters reported that, on Thursday, US Magistrate Judge Laurel Beeler dismissed Musk’s attorney’s challenge on the SEC’s authority to issue subpoenas, compelling Musk to comply with the regulator and testify.
  • The Securities and Exchange Commission (SEC) is actively investigating Musk’s delayed disclosure of his stake in Twitter, a violation of US securities law.
  • The 10-day delay and potential misinformation in the paperwork could have resulted in Musk gaining as much as $156 million, as reported by The Washington Post.
  • While it appears unlikely that Musk can evade future testimonies, the judge suggested a resolution with the SEC could simplify matters.

Elon Musk’s attempts to sidestep further testimony in the Twitter takeover investigation were thwarted by a federal judge. Reuters reported that, on Thursday, US Magistrate Judge Laurel Beeler dismissed Musk’s attorney’s challenge on the SEC’s authority to issue subpoenas, compelling Musk to comply with the regulator and testify.

The Securities and Exchange Commission (SEC) is actively investigating Musk’s delayed disclosure of his stake in Twitter, a violation of US securities law. The 10-day delay and potential misinformation in the paperwork could have resulted in Musk gaining as much as $156 million, as reported by The Washington Post.

Additionally, former Twitter shareholders have filed a class-action lawsuit against Musk regarding the controversial $44 billion takeover of the social media platform, now renamed X. Judge Beeler outlined the path forward for Musk, stating, “You’ve got one more four-hour deposition, one more day of depositions to survive and it’s over.” Failing compliance, the judge may have to issue an order compelling Musk to testify.

While it appears unlikely that Musk can evade future testimonies, the judge suggested a resolution with the SEC could simplify matters. “It seems unlikely there’s going to be any more hassle,” Judge Beeler remarked, emphasizing that working out differences with the SEC would be in Musk’s best interest. However, the impact of such cooperation on Musk’s legal situation remains uncertain.

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