The U.S. Securities and Exchange Commission (SEC) has announced its intention to seek sanctions against Elon Musk for failing to appear for a court-ordered deposition related to the ongoing investigation of his $44 billion acquisition of Twitter, now called X.
In a legal filing, the SEC stated that Musk, only hours before his scheduled testimony on September 10, informed the regulator he would not be present. Instead, Musk chose to oversee the launch of SpaceX’s Polaris Dawn mission from Cape Canaveral, despite prior knowledge of the event. This decision, the SEC argues, violated a court order issued on May 31 compelling him to testify.
The SEC has had enough. A scathing remark in the filing by SEC lawyer Robin Andrews criticized Musk for what was called “gamesmanship” and delay tactics, demanding that his behavior be addressed by the court.
Musk’s attorney, Alex Spiro, defended his client, stating that Musk’s absence was necessary to ensure the safety of astronauts and that the testimony has been rescheduled for October 3. Spiro also emphasized that the absence was due to an “emergency” Musk had not created, and expressed confidence that no similar situations would arise in the future.
The SEC’s investigation delves into whether Musk violated securities laws by delaying the disclosure of his purchase of Twitter shares in 2022. Musk, who amassed a 9.2% stake in the company before offering to buy it outright, has been accused of delaying the public revelation of his stock accumulation, potentially misleading other shareholders.
This isn’t the first time Musk has clashed with the SEC. In 2018, he faced a lawsuit over tweets regarding taking Tesla private, which led to a settlement involving a $20 million fine and his resignation as Tesla’s chairman.
As Musk faces yet another legal challenge, the SEC’s probe continues to loom large over his high-profile business ventures. Whether this latest round will result in lasting consequences for the billionaire remains to be seen.
