The U.S. Securities and Trade Fee sued Elon Musk on Thursday in an effort to compel the billionaire to testify over his buy of Twitter final 12 months.
Attorneys representing the SEC alleged in a criticism filed within the Northern District of California that Musk failed to seem for a Sept. 15 testimony as required by a subpoena, which the attorneys mentioned was served to the Tesla CEO in Could 2023.
Broadly, the SEC mentioned the investigation is tied as to whether anybody dedicated securities fraud in buying Twitter shares final 12 months as Musk was shopping for inventory within the firm. Musk closed his acquisition of Twitter, now often called X, in October in a deal value roughly $44 billion.
“Musk’s ongoing refusal to adjust to the SEC’s administrative subpoena is hindering and delaying the SEC workers’s investigation to find out whether or not violations of the federal securities legal guidelines have occurred,” the attorneys wrote within the criticism. “Accordingly, the SEC now asks the Courtroom to compel Musk to seem for investigative testimony.”
The SEC mentioned it tried to seek out an agreeable time and place to fulfill with Musk, together with providing to fulfill him on the company’s workplace in Fort Price, Texas, “the closest SEC workplace to Musk’s present private residence” within the Austin space. A number of dates had been proposed for October and November of this 12 months.
“These good religion efforts had been met with Musk’s blanket refusal to seem for testimony,” the go well with says.
A spokesperson for X didn’t instantly reply to a request for remark.
Attorneys for the SEC allege that Musk refused to adjust to the subpoena due to “a number of spurious objections, together with an objection to San Francisco as an acceptable testimony location.” Musk had beforehand raised no objection to that location.