SEC Files Court Order to Compel Elon Musk's Testimony in Ongoing Twitter Acquisition Probe

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SEC Files Court Order to Compel Elon Musk's Testimony in Ongoing Twitter Acquisition Probe

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The US Securities and Exchange Commission (SEC) has requested a court order to force Elon Musk to testify in an investigation related to his acquisition of Twitter, as well as his public disclosures regarding the deal. The SEC alleges that Musk has blatantly refused to comply with a previous subpoena. X, formerly known as Twitter, is yet to comment on the matter. This development marks the latest event in a long-standing inquiry into Musk's compliance with disclosure obligations during his purchase of significant Twitter stock before acquiring the company. It highlights the enduring tension between Musk and the SEC concerning his public statements about his businesses. Musk, who became the largest shareholder of Twitter in April 2022, faced legal obstacles after finalizing the $44 billion acquisition of the platform in October of the following year. Musk testified twice during the SEC's investigation in July 2022, providing hundreds of relevant documents. However, the SEC served Musk with another subpoena in May 2023, seeking evidence and testimony not yet in their possession. Despite initially agreeing to testify and rescheduling once, Musk abruptly informed the SEC of his absence two days before the scheduled appearance. The SEC attempted to negotiate alternative dates without success. Musk's legal team accused the regulators of bad faith and expressed concerns about the impact of a recent biography on the case, stating that both parties would require time to review the relevant information.