Shutterstock
Musk believes he doesn't need to testify because content in his recently released biography contains "information potentially relevant to this matter," SEC attorneys claim.
The SEC alleges that Musk failed to appear for testimony on Sept. 15 as it looked into possible stock fraud around Twitter's purchase, according to a petition filed in U.S. District Court for the Northern District of California. The federal agency is investigating whether anyone involved in the deal, finalized last October, committed illegal activities as Musk bought up company shares.
“Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred,” the lawsuit states. “Accordingly, the SEC now asks the court to compel Musk to appear for investigative testimony.”
In its filing, the SEC said Musk is refusing to testify because he believes the subpoena is a way for the agency to “harass him.” The agency also said the recent publication of Musk's biography by journalist Walter Isaacson may have prompted the billionaire to balk at appearing.
“The publication of Musk’s biography is not a legitimate basis for Musk to avoid compliance with a lawfully issued investigative subpoena,” the SEC maintains in its suit.
The SEC’s lawsuit is just the latest headache for Musk stemming from his purchase of X. In July, he admitted that the social media platform was struggling with a “heavy debt load.”
“We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load,” Musk tweeted on July 14. “Need to reach positive cash flow before we have the luxury of anything else.”We’re still negative cash flow, due to ~50% drop in advertising revenue plus heavy debt load. Need to reach positive cash flow before we have the luxury of anything else.
— Elon Musk (@elonmusk) July 15, 2023
A hearing on the lawsuit is scheduled for Nov. 9.
Subscribe to SA Current newsletters.
Follow us: Apple News | Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter| Or sign up for our RSS Feed
