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By Rachel Graf
Elon Musk must submit to further questioning in the US Securities and Exchange Commission’s investigation of his 2022 Twitter Inc. acquisition, a federal judge ruled.
Tuesday’s decision upholds an earlier finding by a magistrate judge that the billionaire should have to comply with the agency’s subpoeana even though he complained it amounted to harassment. US District Judge Jacqueline Scott Corley limited the questioning to five hours and said it must take place within 60 days.
The SEC is seeking information about Musk’s purchases of Twitter stock and statements he made about his investments ahead of his $44 billion purchase of the social media platform. The SEC sent Musk a letter asking about the delayed disclosure of his Twitter stake, which he reported a week late.
Musk previously testified twice in July 2022, the SEC said, but failed to show up last year for follow-up questioning.
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Musk, the world’s third-richest person, has frequently accused the SEC of overzealous enforcement, ever since he agreed with the agency in 2018 to have an in-house lawyer pre-approve his social media posts about Tesla Inc. In April, the US Supreme Court refused to take up Musk’s challenge to the “Twitter sitter” agreement.
Before issuing Tuesday’s order, Corley directed a pointed question to Musk’s attorney at a hearing last week.
“Are you saying then that Mr. Musk, because he’s a very important, busy person, that the SEC can’t investigate him?” the judge said.
Lawyers for Musk didn’t immediately respond to a request for comment.
The case is Securities and Exchange Commission v. Musk, 23-mc-80253, US District Court, Northern District of California (San Francisco).
