A PYMNTS Company

Musk Facing SEC Lawsuit Over Twitter Takeover

 |  October 8, 2023

Billionaire entrepreneur Elon Musk is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC). The SEC has said it is taking legal action to make Musk testify in an investigation into his $44 billion purchase of Twitter, now renamed “X.”

The investigation revolves around whether Musk broke the law when he bought Twitter’s stock in 2022 and the statements he made about it. The SEC had raised concerns in May 2022 about how Musk disclosed his ownership in Twitter and whether he filled out the required paperwork correctly, reported Reuters.

In a recent court filing, the SEC revealed that they had summoned Musk to testify at their San Francisco office in May 2023. Initially, Musk agreed to testify on September 15. However, just two days before the scheduled appearance, Musk objected and said he wouldn’t testify. He also declined suggestions to conduct the interview in Texas in October or November.

Read more: Elon Musk Criticizes FTC Overreach On Twitter

Musk’s  legal team has argued they needed more time to review information from a biography about him published last month before he could testify, claiming undue pressure from the SEC.

According to the court documents, Musk has already given the SEC some documents related to their investigation, and had previously testified via video conference in July of the previous year.

Source: Reuters