A US court has mandated Elon Musk’s testimony in the ongoing Twitter takeover case, allotting him a week to finalize details regarding the time and venue.
Investigation into Securities Law Violation:
Investigators are currently probing whether Musk breached federal securities laws in 2022 by acquiring a 9.2% stake in Twitter well before the takeover. The Securities and Exchange Commission (SEC) mandates disclosure within 10 days for those purchasing over 5% of a publicly traded company. Musk’s failure to comply, described as a potentially “deliberate” delay, incurred a $156 million loss and triggered a class-action lawsuit from former Twitter shareholders.
Delayed Testimony and Biographical Claim:
Scheduled to testify in September last year, Musk failed to appear at the meeting. Allegedly asserting that all requisite information was in his newly released biography by Walter Isaacson, the court, responding to the SEC’s appeal, has now directed Musk to testify within a week, pending mutual agreement on the specifics, notes NIXSolutions.
Historical SEC Tensions:
This legal development adds to Musk’s history with the SEC, dating back to the 2018 fraud accusation over his tweet on “providing financing for Tesla.” While settling with a $20 million fine, Musk remains entangled in disputes, including one with a monitoring lawyer overseeing his Tesla-related tweets.