Dodo Finance: Judge orders Elon Musk to testify before SEC on X platform acquisition

Title: Elon Musk Ordered to Testify Before SEC on Twitter Purchase

In a recent ruling, the Federal court in California has mandated that entrepreneur Elon Musk must testify before the Securities and Exchange Commission (SEC) regarding his purchase of Twitter, now known as X. The U.S. District Court enforced a subpoena for Musk’s testimony regarding potential violations of federal securities laws.

Initially, Musk had agreed to testify, but he later failed to appear and resisted the subpoena, claiming that the SEC’s investigation is baseless and harassing. Musk argued that the subpoena exceeded the SEC’s authority. However, the court ruled that the staff attorneys who issued the subpoena are not subject to the Appointments Clause.

The court determined that the evidence and testimony are relevant and material to the SEC’s investigation. As a result, both Musk and the SEC must arrange a meeting within a week to schedule the testimony. Alternatively, they have the option to submit a joint letter brief outlining their respective positions.

The SEC had filed a lawsuit against Musk in October, seeking to force his testimony in an investigation into the Twitter acquisition. Regulators are examining whether Musk complied with the law in disclosing his purchases of Twitter stock and whether his statements about the acquisition were misleading.

The SEC began investigating Musk’s financial interest in Twitter in April 2022. Initially, Musk provided documents and testified for the SEC. However, the agency had further questions after receiving new documents, leading to the unsuccessful attempt to interview him in September 2023.

Musk’s attorneys argue that the SEC’s pursuit of him is harassment and assert that the SEC’s enforcement staff lacks the authority to issue subpoenas. The ongoing legal battle between Elon Musk and the SEC has attracted significant attention, as both sides present their arguments and await the scheduled testimony.

The outcome of this case could set a precedent for similar investigations involving high-profile individuals and raise important questions about the scope of the SEC’s authority in issuing subpoenas. As proceedings continue, the financial world eagerly anticipates the forthcoming testimony, which may shed light on the allegations surrounding Elon Musk’s Twitter purchase.