In a significant development, a federal judge, Laurel Beeler, has formally ordered Elon Musk to testify once again in the ongoing U.S. Securities and Exchange Commission’s (SEC) probe into his $44 billion takeover of Twitter. The judge’s order, issued on Saturday night, solidifies a tentative ruling from December that favored the regulatory body.
The SEC had filed a lawsuit against Musk in October, compelling the Tesla and SpaceX CEO to testify regarding his 2022 purchase of Twitter, which he subsequently renamed X. Musk had previously refused to attend an interview in September as part of the SEC’s investigation, claiming harassment from the regulator.
The investigation revolves around whether Musk adhered to the law when filing necessary paperwork for his Twitter stock purchases and if his statements regarding the deal were misleading. Musk had contested the SEC’s attempt to interview him, arguing that they had already done so twice before.
However, Judge Beeler rejected Musk’s argument, affirming the SEC’s authority to issue the subpoena seeking relevant information. The judge has given the regulator and Musk a week to agree on a date and location for the interview. In the event of a disagreement, Judge Beeler will intervene and make a decision.
This legal clash between Musk and the SEC traces back to 2018 when the regulator sued him over his tweet claiming “funding secured” in relation to a potential plan to take Tesla private. To settle that case, Musk had agreed to have a Tesla lawyer vet his tweets about the electric vehicle maker. The SEC sued him again in 2019 for allegedly breaching that provision.
Musk has taken the matter to the U.S. Supreme Court, seeking a review of the agreement and claiming it infringes upon his constitutional right to free speech. The battle between Musk and the SEC appears to be escalating as the scrutiny into the Twitter takeover intensifies.
