Background
A judge has mandated that Elon Musk be called to testify for a third time in connection with the Securities and Exchange Commission (SEC) investigation into his acquisition of Twitter for $44 billion, now rebranded as X, in 2022.
Court Order
Magistrate Judge Laurel Beeler issued an order on Saturday, giving Musk, his team, and the SEC a week to agree on a date and location for Musk’s testimony. In a previous court hearing, Beeler vowed to issue an order if both parties failed to reach a consensus on the testimony arrangements. Despite initial agreement on a date, Musk did not appear, citing the SEC’s investigation as baseless and harassing.
Enforcement of Subpoena
Beeler asserted that the court is enforcing the SEC’s subpoena, deeming the testimony as “not unduly burdensome” for Musk. The SEC had offered Musk the option to testify in Texas, his place of residence.
Investigation Details
The SEC has been delving into the events leading up to Musk’s takeover of Twitter when the social media platform was publicly traded. The agency has not yet determined if any federal securities laws were breached. Musk has previously testified twice in the case, with the SEC receiving a plethora of new documents subsequent to his last appearance.
Acquisition History
Musk finalized the $44 billion deal to purchase Twitter and privatize it in October 2022, following protracted legal disputes with the company’s former leadership. Initially agreeing to acquire Twitter in April 2022, Musk attempted to retract from the deal, prompting a lawsuit from the company to enforce the acquisition.
Reactions
Neither the SEC nor Musk’s legal representative have provided immediate comments following the judge’s order.