Elon Musk has to clarify the purchase of Twitter, today renamed X, and is avoiding doing so. This is what the US stock market regulator, the SEC, considers, which has requested a court order to meet with them and provide details in the investigation that seeks to resolve whether it violated market laws by purchasing shares before acquiring the entire social network.
The regulator stated this Thursday that Musk did not appear to testify last month, as requested in a subpoena. Musk agreed to an interview with the SEC in September, but two days before meeting on the scheduled date, the 15th of that month, Musk raised several objections, including that San Francisco, where they would meet, was not the appropriate place to do so. . The investigators suggested new dates and agreed to move the interview to Fort Worth, Texas, near where Musk now lives, where he later declined to meet. He also declined to meet in October or November at the same location.
In a press release, the entity said it is seeking “Musk’s testimony to obtain information that is not yet in the SEC’s possession and that is relevant to its investigation.”
In refusing to appear, Musk objected that he was busy, that the SEC was trying to “harass him” and that his lawyer needed time to review potentially relevant material included in a biography published last month, the regulator said.
Before acquiring all of Twitter, Musk first bought a 9.2% stake in the company in March 2022. He then disclosed the stake to the SEC in April. At the time, the SEC sent him a query about how he disclosed his involvement, especially focusing on the format used.
SEC rules require that in cases like this, a purchase of more than 5% of a listed company be disclosed within 10 days. Musk presented the information late: a lawsuit filed by other shareholders claims that he did so to continue buying securities at low prices. Furthermore, he initially indicated that he did not plan to take over Twitter or influence its management decisions. Days later, he accepted and then rejected a position on the board of directors. In late April, he announced plans to buy the company.
The SEC began its investigation that month and has since requested thousands of documents from Musk and others involved. He is currently reviewing his public statements and disclosures about the purchase to see if he did it correctly. The tycoon has already sent hundreds of documents and has testified twice. “Enough is enough,” Musk’s lawyer Alex Spiro said in a statement.
