Elon Musk Fights SEC's 'Harassment' in Twitter Takeover Probe

Tech billionaire Elon Musk has requested a federal judge in San Francisco to spare him from testifying in the ongoing US Securities and Exchange Commission (SEC) investigation into his high-profile $44 billion takeover of social media giant Twitter, which he subsequently rebranded as 'X'. Musk's legal team argued that the SEC's subpoena exceeds its investigative authority, is overly burdensome, and seeks irrelevant evidence. The ongoing legal clash has further intensified the already strained relationship between Musk and the US market regulator.

The SEC initiated its probe into Musk's Twitter escapade back in April 2022, focusing on his stock purchases and related disclosures. However, Musk's legal team contends that the investigation has spiralled into a 'misguided' campaign that amounts to harassment.

Musk's attorney, Alex Spiro, has voiced his disapproval of the SEC's tactics, stating, 'The SEC's pursuit of Mr. Musk has crossed the line into harassment.'

As the battle between Musk and the SEC unfolds, the agency has remained firm in its stance, emphasizing its authority to request additional testimony and its receipt of new documents since its last interview with Musk. The SEC has issued an astounding 32 subpoenas as part of its investigation, and they've questioned Musk and at least three others seven times, according to Spiro.

The crux of the SEC's probe is Musk's April 2022 disclosure of his acquisition of a 9.2% stake in Twitter, which arrived eleven days after the agency's deadline for such disclosures. Initially, Musk portrayed himself as a passive stakeholder, with no intention of taking over the company. However, just a few weeks later, he made headlines by announcing his $44 billion bid to acquire Twitter, a deal that later faced legal challenges as he alleged that the social media platform was not fully disclosing the extent of bot activity on its platform.

After prolonged legal wrangling, Musk completed the acquisition of Twitter in late October 2022.

Musk's legal team argues that the SEC's attention on their client has extended far beyond the scope of a mere late filing, calling it 'the latest chapter in a more-than-five-year saga of agency harassment against Mr Musk and related entities.'

This isn't the first time Elon Musk has found himself at odds with the SEC. In 2018, the billionaire entrepreneur was sued by the agency over his now-infamous tweet claiming he had 'funding secured' to take Tesla private, a case that eventually led to a settlement. However, Musk faced yet another SEC lawsuit in 2019, accusing him of violating the terms of the earlier agreement.

Musk, who has consistently criticized the SEC for its 'endless' investigations into his activities and those of his companies, has expressed his intention to seek a review by the US Supreme Court regarding the legality of his SEC settlement. This settlement currently requires him to have a Tesla lawyer review some of his social media posts before publishing them.