The U.S. Securities and Exchange Commission (SEC) announced on Friday its intent to pursue sanctions against Elon Musk.
The decision stems from the Tesla and SpaceX CEO’s failure to appear for a court-ordered testimony related to the SEC’s ongoing investigation into his $44 billion acquisition of Twitter, now known as X.
The SEC’s filing highlights that just three hours before his scheduled September 10 testimony, Musk informed the regulatory body he would not appear.
Instead, Musk traveled to Cape Canaveral, Florida, to oversee the SpaceX Polaris Dawn mission launch.
Elon Musk vs. the SEC: A History of Disputes
Musk’s legal team argues that sanctions are excessive and unnecessary, emphasizing that his testimony has been rescheduled for October 3.
This latest clash marks another chapter in the ongoing friction between the renowned entrepreneur and the SEC, however.
The SEC’s investigation centers around potential violations of federal securities laws by Elon Musk during his 2022 purchase of Twitter stock.
Last October, the SEC filed a lawsuit against Musk after he declined to participate in an interview for the investigation. Musk has publicly accused the SEC of harassment through its use of subpoenas.
Will SEC Sanctions Stick to Elon Musk?
While Musk’s lawyers maintain their client’s cooperation, the SEC’s pursuit of sanctions raises questions about the investigation’s outcome.
The regulatory body seeks an order requiring Musk to justify his actions and demonstrate why he should not be found in contempt of court.
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