SEC Seeks Sanctions Against Elon Musk About $44 Billion Acquisition

Key Points:

• The SEC intends to seek sanctions against Elon Musk for failing to attend court-ordered testimony regarding his $44 billion acquisition of Twitter.
• Musk informed the SEC only three hours prior to his scheduled appearance, claiming an emergency caused by a SpaceX launch.

SEC Seeks Sanctions Against Elon Musk for Failure to Testify

The SEC announced on Friday that it will pursue sanctions against Elon Musk for failing to appear for a sworn deposition, as mandated by the court, concerning his acquisition of Twitter.

Musk's Actions and SEC Response

The SEC alleges that Musk violated a previous court order requiring his testimony. Musk's absence was attributed to a trip to Florida for a SpaceX launch, which SEC attorney Robin Andrews characterized as deliberate evasion. The SEC seeks reimbursement for costs incurred by its attorneys due to Musk's last-minute cancellation.

Musk's Defense and Ongoing Tensions

Musk's lawyer, Alex Spiro, maintained that the emergency was unavoidable due to the safety risks to astronauts involved in the launch. Spiro argued that sanctions would be excessive, as a new testimony date has already been set for October.

The SEC's sanctions add to a history of tensions between Musk and the agency. In 2018, Musk tweeted about taking Tesla private, for which he settled with the SEC for $20 million and stepped down as Tesla chairman. The SEC also cited a case involving Musk's stock purchases and failure to disclose information, which potentially disadvantaged other shareholders.