A judge has ordered Elon Musk to testify for a third time as part of the Securities and Exchange Commission’s (SEC) investigation into his USD 44 billion purchase of Twitter, now called X, in 2022. Magistrate Judge Laurel Beeler issued the order, giving Musk, his team, and the SEC a week to agree on a date and location for Musk’s testimony. The SEC had given Musk the option to testify in Texas, where he lives.
This development comes after a court hearing last December where Judge Beeler stated that she would issue an order if the two sides couldn’t agree on when and where Musk would testify. In her order, Beeler mentioned that the court is enforcing the SEC’s subpoena and that the testimony is not unduly burdensome for Musk. However, Musk has resisted the subpoena, arguing that the SEC’s investigation is baseless and seeks irrelevant information. He also contends that the subpoena exceeds the SEC’s authority as it was not issued by an officer appointed by the President, a court, or the head of a department, as required by the US Constitution.
The SEC has been conducting a fact-finding investigation into the period before Musk’s Twitter takeover, when the social media company was still publicly traded. The agency has stated that it has not concluded any federal securities laws were violated during that time.
Musk has already testified twice in relation to this case. Since then, the SEC has received thousands of new documents from various parties, including hundreds of documents from Musk himself. The SEC and a lawyer for Musk have not yet provided comment on this recent order.
Elon Musk closed his USD 44 billion agreement to buy Twitter and take it private in October 2022, following a lengthy legal battle with the social media company’s previous leadership. After initially signing the deal to acquire Twitter in April 2022, Musk tried to back out of it, resulting in the company suing him to compel him to proceed with the acquisition.
As the SEC’s investigation continues, Musk’s testimony will provide further insight into the circumstances surrounding his purchase of Twitter and any potential violations of federal securities laws. The outcome of this probe could have significant implications for both Musk and the future of Twitter as it undergoes major changes under its new ownership.
