Elon Musk may testify again in SEC's Twitter takeover probe

Elon Musk may testify again in SEC's Twitter takeover probe
10 May 2024

Elon Musk could be called to testify once more in the US Securities and Exchange Commission's (SEC) investigation into his $44 billion acquisition of Twitter.

This possibility was hinted at by a federal judge on Thursday.

Despite pleas from Musk's lawyers urging US District Judge Jacqueline Scott Corley to reject the SEC's request, the agency is pushing for Musk to testify as part of its ongoing probe into his 2022 purchase of the social media company.

SEC's legal pursuit intensifies amid Musk's resistance
Subpoena standoff

The SEC sued Musk in October last year after he declined to attend a September interview for the investigation, alleging that the agency was trying to "harass" him with multiple subpoenas.

Judge Corley, however, didn't issue a decision on Thursday but expressed during a hearing at the US District Court for Northern District of California, "I don't think that the deposition subpoena is unreasonable. What I don't know is why does the deposition have to be at an SEC office?"

Investigations on Twitter acquisition and statements
Probe details

The SEC's investigation is centered on whether Musk violated federal securities laws when he purchased stock in Twitter, which was later renamed X.

The agency is also scrutinizing statements and filings he made concerning the deal.

In 2022, Musk provided documents for the SEC's probe and testified via video-conference for two half-day sessions in July last year.

The agency has stated that its lawyers have more questions for Musk post-receiving new documents and have sought additional testimony.

Musk's legal team argues against further testimony
Defense argument

Musk's attorney, Rachel Frank from Quinn Emanuel Urquhart & Sullivan, contended on Thursday that additional testimony would be a "burden" for Musk and distract him from his duties to shareholders.

In response, Judge Corley questioned whether Musk should be exempt from securities laws and further investigations simply because he is a "very busy person" running multiple companies.