Elon Musk Faces Potential Sanctions as SEC Investigates Twitter Purchase #ElonMuskUpdates
Elon Musk. SEC. Twitter
Musk’s attorney labeled the SEC’s move as “drastic” and unnecessary.
Elon Musk is under scrutiny as the U.S. Securities and Exchange Commission (SEC) moves to impose sanctions following his failure to attend a court-ordered deposition related to his $44 billion acquisition of Twitter.
The regulatory body announced on Friday its intention to seek sanctions against Musk after he canceled his scheduled testimony just three hours before it was set to take place on September 10, Reuters reported.
The SEC’s filing in a San Francisco federal court stated that it would request an order demanding Musk explain why he should not be held in civil contempt for failing to appear.
Musk’s Last-Minute Decision to Skip Violates Court Order
The agency argues that Musk’s last-minute decision to skip the deposition was in violation of a May 31 court order compelling his testimony.
Despite his role as SpaceX’s chief technical officer, the SEC maintains that Musk would have been aware of the planned launch well in advance, given the company’s internal discussions two days prior.
“Musk’s excuse itself smacks of gamesmanship,” Andrews wrote in the filing. “The court must make clear that Musk’s delay tactics must cease.”
Alex Spiro, Musk’s attorney, labeled the SEC’s move as “drastic” and unnecessary.
He argued that Musk’s presence was crucial for the safety of the astronauts involved in the mission and that the testimony has already been rescheduled for October 3.
Spiro contended that the failure to testify was due to an “emergency” and there is no indication it would happen again.
The SEC has refrained from commenting further on the case but noted in its filing that nothing guarantees Musk will appear for the rescheduled testimony on October
Despite his role as SpaceX’s chief technical officer, the SEC maintains that Musk would have been aware of the planned launch.
