Judge Beeler’s Order
A judge has mandated Elon Musk to testify for a third time in the Securities and Exchange Commission’s probe into his $44 billion acquisition of Twitter, now rebranded as X. Magistrate Judge Laurel Beeler issued an order on Saturday, granting Musk, his team, and the SEC a week to settle on a date and location for the testimony.
Reasoning Behind the Order
Judge Beeler highlighted that although Musk resisted the subpoena, deeming the investigation baseless and harassing, the court is enforcing the SEC’s request. The SEC, in its fact-finding mission pre-Twitter acquisition, aims to unravel any potential violation of federal securities laws.
Background on the Case
Following a $44 billion deal to privatize Twitter in October 2022, Musk faced legal hurdles, including a lawsuit from the company’s prior management. Musk’s attempts to retract from the acquisition led to a courtroom battle. The SEC’s scrutiny intensified after receiving a plethora of new documents, including hundreds from Musk.
Response from Entities
The SEC extended the option for Musk to testify in Texas, his current residence. Neither the SEC nor Musk’s legal representative responded immediately to requests for comment on the recent developments.