- SEC seeks sanctions against Elon Musk for skipping depositions in the Twitter acquisition probe, emphasizing accountability.
- Musk’s attorney argues his missed testimonies were due to emergencies, claiming the SEC’s sanctions request is excessive.
- A separate lawsuit alleges Musk misled shareholders about his Twitter investments, complicating the ongoing SEC investigation.
The SEC has requested a federal judge to sanction Elon Musk for failing to attend depositions related to his 2022 Twitter acquisition. Musk missed two scheduled appearances, which the SEC views as defiance against a lawful subpoena and a court order.
The commission is investigating whether Musk or associates committed securities fraud during his Twitter stake purchase. This inquiry intensifies as the SEC aims to clarify Musk’s investment strategies and the implications for shareholders.
Emergency Claims and Legal Responses
Moreover, SEC attorney Robin Andrews noted that Musk cancelled his deposition just hours before it was set to occur. This cancellation cost the SEC both time and resources, as their team had traveled to Los Angeles for the deposition.
Consequently, Andrews indicated that Musk’s actions might warrant civil contempt. Further delays should not be allowed, he emphasized, underscoring the necessity for the court to put an end to Musk’s “gamesmanship and delay tactics.”
Lawyer Alex Spiro for Musk responded by saying the SEC’s demand for penalties is overly harsh. According to him, there was an emergency pertaining to a SpaceX launch, which is why Musk canceled.
Furthermore, Spiro stated that Musk has cooperated with the SEC in other ongoing investigations. He insisted that the SEC and Musk had agreed to reschedule the deposition, deeming it acceptable given the circumstances.
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Ongoing Legal Challenges and Shareholder Impact
Moreover, Musk is accused of hiding his Twitter stakes in a different legal action brought by the Oklahoma Firefighters Pension and Retirement System. The lawsuit alleges that Musk misled investors and influenced their choices. The case’s intricate circumstances were highlighted by the confidential discussions regarding Musk’s purchasing strategy that were made public through discovery.
The SEC intends to reschedule Musk’s deposition for early October. However, it remains cautious, noting that past experiences suggest Musk may still fail to appear. Hence, the agency emphasizes the importance of accountability in this ongoing investigation.
As a result of earlier scandals from 2018, the current state of affairs underscores the continued hostility between Musk and the SEC. Aware of developments pertaining to Musk’s compliance and the consequences of securities regulation, stakeholders will be closely following the inquiry as it progresses.
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