SEC asks court to threaten Musk with sanctions
The U.S. Securities and Exchange Commission (SEC) intends to seek sanctions against American entrepreneur Ilon Musk for his failure to appear to testify in an investigation related to his purchase of Twitter. This was reported by CNN on Friday, September 20, citing court documents.
"The Commission believes that Musk violated the court order, which indicated that the rescheduling of the hearing date requires the written consent of the Commission", - said in the material of the TV channel.
Earlier this year, a federal judge ordered Musk to testify as part of the SEC's investigation into the social network's acquisition. The agency is investigating whether Musk followed the law and whether his statements regarding the deal were misleading.
Three hours before the deposition, Musk's lawyer told the SEC that his client, who also runs SpaceX, had to travel urgently to the East Coast for the launch of the Polaris Dawn mission and would not be able to testify.
The commission now wants the court to impose meaningful obligations on Musk that would force him to appear on a new agreed-upon date in October, the TV station reported.
Earlier, on December 31, it was reported that the social network X fell in price by 71% after its purchase by American entrepreneur Ilon Musk. It is noted that more than 10% in price X could lose in November, when Musk reprimanded advertisers who refused advertising cooperation after the businessman's statements about the Palestinian-Israeli conflict.
Twitter Inc. was founded in 2006. The company's main product is a social network for short messaging. Millionaire Musk became the head of Twitter on October 27, 2022. The sum of the deal amounted to $44 billion. The businessman immediately fired a number of members of management and dissolved the board of directors, becoming the sole head of the company.
In October 2023, the U.S. Securities and Exchange Commission sued Musk to force him to appear for a deposition. SEC attorneys argued that Musk failed to appear for a deposition on September 15, as required by a subpoena issued to the billionaire back in May 2023.
