Elon Musk Objects to SEC Subpoena in Twitter Acquisition Investigation
Tech mogul Elon Musk has filed an objection to a subpoena issued by the US Securities and Exchange Commission (SEC) regarding its investigation into his $44 billion acquisition of social media platform Twitter, now known as X. The objection was submitted by Musk’s legal team in a San Francisco federal court, where the SEC had filed a lawsuit against him on October 5th. The SEC is seeking Musk’s testimony for their probe initiated in April 2022.
Musk’s lawyers argue that the SEC’s subpoena exceeds the agency’s investigative powers, is excessively burdensome, and requests evidence that is irrelevant. The SEC has been examining Musk’s Twitter stock purchases in 2022, as well as his statements and SEC filings pertaining to Twitter. Musk declined to participate in an interview for the investigation that took place in September. One of Musk’s attorneys, Alex Spiro, has described the probe as misguided.
In their filing, Spiro and the other lawyers representing Musk asserted that the SEC’s pursuit of him has crossed the line into harassment. The SEC has not yet commented on Musk’s objection. However, the agency has previously stated that it has the right to request additional testimony from Musk and has acquired new documents since their last conversation with him.
On April 4th, 2022, Musk disclosed that he had purchased a 9.2% stake in Twitter, 11 days after the SEC’s deadline for such disclosures. Initially, Musk had intended to be a passive investor, but later revealed plans to acquire Twitter for $44 billion. However, Musk later attempted to back out of the deal, alleging that Twitter had not fully disclosed bot activity on its platform. After being sued to finalize the transaction, Musk completed the acquisition of Twitter in late October 2022.
According to court filings, the SEC has issued a total of 32 subpoenas as part of the investigation and has obtained testimony from Musk and at least three other individuals on seven occasions. Musk himself has been served with five document subpoenas and three subpoenas for testimony. The SEC mentioned in a court filing that Musk testified through a video conference in July of last year, but the SEC lawyers have further questions for him after reviewing the documents.
The legal battle between Elon Musk and the SEC continues to unfold, with Musk objecting to the SEC’s subpoena and arguing that it goes beyond the agency’s authority. As the investigation into his acquisition of Twitter progresses, it remains to be seen how this clash between Musk and the SEC will ultimately unfold.
