Elon Musk didn't show up for testimony in a probe over his $44 billion Twitter takeover. Now the SEC wants sanctions
SEC Seeks Sanctions Against Tech CEO Over Missed Testimony #
The Securities and Exchange Commission (SEC) plans to seek sanctions against a prominent tech CEO for failing to appear for testimony in an investigation related to his acquisition of a major social media platform, according to a recent court filing.
Earlier this year, a federal judge ordered the CEO to testify as part of the SEC’s probe into the $44 billion acquisition. The agency is investigating whether the billionaire followed proper disclosure procedures when purchasing stock in the social media company and if his statements regarding the deal were misleading.
The two parties had initially agreed on a date for the testimony, with SEC lawyers traveling to Los Angeles to conduct the interview. However, just hours before the scheduled time, the CEO’s lawyer informed the SEC that his client had to urgently travel to the East Coast for a space mission launch and would be unable to attend or reschedule for the following day.
After struggling to find a new date, the parties eventually agreed on a time in early October. The SEC alleges that the CEO violated a court order requiring him to seek written consent or a court order to modify the testimony date.
The regulatory body criticized the CEO’s excuse, noting that the space company had already announced the launch date two days earlier. They argued that as the company’s Chief Technical Officer, the CEO would have been aware of the scheduling conflict in advance.
The SEC is seeking “meaningful conditional relief” if the CEO does not appear at the rescheduled October testimony. They also intend to file a sanctions motion to recoup travel costs for the cancelled testimony and for additional relief.
In response, the CEO’s lawyers argued that court intervention is unnecessary, as the parties have already agreed to a new testimony date. They stated that their client is already under a court order to appear “absent an emergency that [he] did not create and could not avoid.”
This incident is the latest in a series of tensions between the CEO and the SEC, which began in 2018 when the agency sued him for making false statements about taking his electric car company private.