The U.S. Securities and Exchange Commission has filed a lawsuit against Elon Musk, seeking to compel the billionaire to testify regarding his purchase of Twitter last year.
In a complaint filed in the Northern District of California, the SEC’s attorneys alleged that Musk failed to appear for a scheduled testimony on September 15th, in violation of a subpoena served to the Tesla CEO in May 2023.
The SEC’s investigation centers around the potential securities fraud committed during the purchase of Twitter shares, while Musk was buying stock in the company. Musk completed his acquisition of Twitter, now called X, in October, with the deal valued at approximately $44 billion.
In the complaint, the attorneys wrote, “Musk’s ongoing refusal to comply with the SEC’s administrative subpoena is hindering and delaying the SEC staff’s investigation to determine whether violations of the federal securities laws have occurred. Accordingly, the SEC now asks the Court to compel Musk to appear for investigative testimony.”
According to the SEC, several attempts were made to arrange a meeting with Musk, including offering to meet him at the agency’s office in Fort Worth, Texas, which is closest to his residence in the Austin area. Multiple dates in October and November were proposed, but Musk consistently refused to appear for testimony.
A spokesperson for X did not immediately respond to a request for comment.
The SEC lawyers claim that Musk refused to comply with the subpoena based on “spurious objections,” such as objecting to San Francisco as a suitable location for testimony. Previously, Musk had not raised any objection to that location.
The attorneys also allege that Musk believed the commission was using the subpoena to “harass” him, which he felt justified his decision to not comply. Musk also cited the recent publication of his biography by journalist Walter Isaacson as another reason for not appearing, suggesting that the book may contain “new information potentially relevant to this matter.”
In response to this, the attorneys argued, “The publication of Musk’s biography is not a legitimate basis for Musk to avoid compliance with a lawfully issued investigative subpoena. In any event, Musk’s initial refusal to comply with the subpoena has now provided his counsel with sufficient time to review the biography for any relevant information, rendering this objection moot and legally insufficient.”
The SEC stated that its investigation is ongoing and has not yet concluded that any individuals or entities have violated federal securities laws.
Watch: CNBC’s full interview with ‘Elon Musk’ author Walter Isaacson.
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