US SEC Slaps Lawsuit on Elon Musk for Failing to Cooperate

•  The SEC has filed a lawsuit against Elon Musk, accusing him of failing to comply with a subpoena for his testimony related to his acquisition of Twitter/X shares.
• Elon Musk has responded to the SEC’s action on social media, expressing confusion and frustration over ongoing scrutiny from various entities, including the SEC and the Biden Administration.

On Thursday, October 5, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against billionaire Elon Musk in order to compel his testimony over the acquisition of Twitter.

Attorneys representing the SEC have accused Elon Musk of failing to fulfill a subpoena-mandated appearance for a testimony scheduled for September 15. The subpoena had been served to Musk in May 2023. The investigation in question revolves around potential securities fraud linked to Musk’s acquisition of Twitter shares while he was also purchasing stock in the social media company, which has since been rebranded as X. Musk’s acquisition of Twitter had taken place the previous year in a transaction valued at around $44 billion.

In a complaint filed within the Northern District of California, the SEC expressed its concerns over Musk’s refusal to comply with the administrative subpoena. The SEC’s legal representatives argued that this “non-compliance” is hindering and delaying their inquiry into potential breaches of federal securities laws. As a result, the SEC has sought the court’s intervention, requesting that Musk participate in the investigative testimony.

The SEC stated that it made efforts to arrange a mutually agreeable meeting with Elon Musk, even extending an invitation to meet at the SEC’s Fort Worth, Texas office, considered to be the nearest to Musk’s current residence in the Austin area. The SEC also said that they suggested several dates for meetings scheduled in October and November of the current year.

The lawsuit contends, “Despite these earnest attempts, Musk consistently declined to appear for testimony.”

Elon Musk Fires Back on the SEC

In response to the legal action undertaken by the US SEC, Elon Musk has fired back on the social media platform expressing his confusion and frustration on the matter.

Elon Musk also raised concerns about the SEC’s investigation into his acquisition of Twitter/X, expressing his feeling of being under continual scrutiny by various entities, including the Biden Administration and the SEC.

He further reaffirmed his dedication to safeguarding free speech, advancing electric vehicle technology, and exploring outer space, expressing puzzlement at the resistance he encounters. Musk added:

Why is the SEC looking into my purchase of Twitter/X? Everyday it’s something different. One week it’s the Biden Administration, another week it’s the SEC, and another week it’s someone else. I’m literally just trying to protect free speech, build electric cars, and put humans on Mars. Why don’t they like me?

Alex Spiro, the attorney representing Elon Musk, commented in a statement, stating, “The SEC has already interviewed Mr. Musk several times in this misguided investigation, and we believe it’s time to bring it to a close.”

Elon Musk has been an ardent supporter of Dogecoin and many people expect him to integrate DOGE payments to Twitter going ahead. However, yesterday’s SEC action didn’t have any negative impact on the DOGE price. At press time DOGE is trading at $0.06119 with a market cap of $8.6 billion.

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