Elon Musk Ordered to Testify Again in Twitter Acquisition Probe

In a significant development, a judge has ordered Elon Musk to appear for a third round of testimony as part of the Securities and Exchange Commission's (SEC) ongoing investigation into his USD 44 billion acquisition of Twitter, now known as X, in 2022. Magistrate Judge Laurel Beeler issued an order on Saturday, instructing Musk, his legal team, and the SEC to mutually agree upon a date and location for Musk's testimony within a week.

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Contentious Disagreements and Legal Challenges

During a court hearing in December 2022, Judge Beeler had indicated her intention to issue an order if the parties involved failed to reach an agreement on the timing and venue for Musk's testimony. Despite initial consensus on a date, Musk ultimately failed to appear and resisted the subpoena, citing the SEC's investigation as baseless, harassing, and seeking irrelevant information.

Furthermore, Musk contends that the subpoena issued by an SEC staff member appointed by the SEC's Director of Enforcement exceeds the SEC's authority. He argues that the subpoena was not issued by an officer appointed by the President, a court, or the head of a department, as mandated by the US Constitution.

SEC's Investigation and Musk's Previous Testimonies

Judge Beeler emphasized that the court will enforce the SEC's subpoena, asserting that the testimony does not impose an undue burden on Musk. Notably, the SEC had offered Musk the option to testify in Texas, where he resides.

The SEC has been conducting a thorough fact-finding investigation into the period preceding Musk's Twitter takeover, when the San Francisco-based social media company was still publicly traded. The agency has clarified that it has not reached any conclusions regarding violations of federal securities laws.

It is worth noting that Musk has already provided testimony in the case on two separate occasions. However, since his previous testimonies, the SEC has obtained thousands of new documents from various sources, including hundreds of documents from Musk himself.

Twitter Acquisition Saga and Legal Battles

In October 2022, Musk finalized his USD 44 billion deal to acquire Twitter and take it private, culminating a protracted legal battle with the social media company's previous leadership. The acquisition followed Musk's initial agreement to purchase Twitter in April 2022, which was subsequently met with his attempts to withdraw from the deal. This led Twitter to file a lawsuit against Musk to enforce the acquisition.

As of the time of this report, neither the SEC nor Musk's legal representative has responded to requests for comments.