TechSEC Accuses Elon Musk of Manipulating Investigation into Twitter Takeover

SEC Accuses Elon Musk of Manipulating Investigation into Twitter Takeover

Karissa Bell

Recent developments in the ongoing investigation of Elon Musk by SEC officials regarding his actions surrounding the Twitter takeover suggest a growing impatience with his legal maneuvering. A dispute has arisen due to Musk’s refusal to participate in the investigation, leading to the SEC accusing him of attempting to misrepresent the true nature of their inquiry. In a court filing, the SEC alleges that Musk’s actions are aimed at distorting the investigation’s scope in a bid to avoid providing relevant evidence.

The SEC initiated its investigation of Musk in 2022 concerning his delayed disclosure of his ownership stake in Twitter when it was a publicly-traded company. Last year, the regulator filed a lawsuit against Musk in an attempt to compel his testimony. According to the SEC, their investigation encompasses potential violations of federal securities laws related to Musk’s purchase of Twitter stock and associated SEC filings. A federal judge recently mandated Musk’s compliance with a subpoena and the scheduling of an interview.

However, Musk has yet to testify, leading the SEC to accuse him of employing delay tactics to impede the investigation process. Despite Musk’s legal team characterizing the probe as centered on a minor SEC filing discrepancy, the SEC asserts that Musk has been informed otherwise. Additionally, Musk faces scrutiny for potential securities fraud under Section 10(b) of the Securities Exchange Act, specifically regarding his public statements concerning the Twitter acquisition.

The SEC’s filing also mentions insights from a recently published biography of Musk by Walter Isaacson, which the regulator deems as containing crucial new evidence. Musk’s failure to attend his scheduled testimony coincided with the book’s release, highlighting the relevance of this new information to the ongoing investigation. Notably, Isaacson’s portrayal of the Twitter takeover has previously stirred controversy, with former executives suing Musk over unpaid severance citing passages from the biography.

As of now, there has been no immediate response from Musk’s representatives following these latest developments.

» …
rnrn

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Subscribe Today

GET EXCLUSIVE FULL ACCESS TO PREMIUM CONTENT

SUPPORT NONPROFIT JOURNALISM

EXPERT ANALYSIS OF AND EMERGING TRENDS IN CHILD WELFARE AND JUVENILE JUSTICE

TOPICAL VIDEO WEBINARS

Get unlimited access to our EXCLUSIVE Content and our archive of subscriber stories.

Exclusive content

Latest article

More article