SEC Seeks Elon Musk Testimony on Twitter Purchase

Elon MuskPhoto byNORAD and US NORTHCOM Public Affairs

The Securities and Exchange Commission (SEC) announced yesterday that it has filed an application seeking an order directing Elon Musk to comply with an investigative subpoena calling for his appearance for testimony, with which Musk failed to comply.

According to the SEC staff’s filing in the U.S. District Court for the Northern District of California, the testimony subpoena to Musk relates to an ongoing investigation by the SEC regarding, among other things, potential violations of various provisions of the federal securities laws in connection with Musk’s 2022 purchases of Twitter and Musk’s 2022 statements and SEC filings relating to Twitter.

The SEC seeks Musk’s testimony to obtain information not already in the SEC’s possession that is relevant to its legitimate and lawful investigation, accoding to the filing.

According to the filing, Musk failed to appear for testimony as required by the investigative subpoena served by the SEC, despite:

Agreeing to appear for testimony on a mutually agreed upon date in September 2023; having been served with a subpoena in May 2023 requiring his appearance for testimony in the SEC’s San Francisco Regional Office on that mutually agreed upon date; and raising no objection to the subpoena from May 2023 until two days before his scheduled testimony date in September 2023, when Musk notified the SEC that he would not appear.

According to the filing, Musk attempted to justify his refusal to comply with the subpoena by raising several spurious objections for the first time.

The SEC staff’s application seeks an order from the court directing Musk to comply with the subpoena. The application is subject to the court’s ruling. The SEC staff is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.

If a person or entity refuses to comply with a subpoena issued by SEC enforcement staff pursuant to a formal order of investigation, the Commission may file a subpoena enforcement action in federal district court seeking an order compelling compliance.

Musk could not be reached for comment.