The SEC filed a lawsuit against Elon Musk


The US Securities and Exchange Commission (SEC) has sued billionaire Elon Musk because he refused to testify about the X acquisition deal.

Musk’s answer was not long in coming. He called for a “comprehensive review” of the SEC and the creation of a commission to take action against individuals who “abuse their powers for personal and political gain.”

The businessman also suggested that the Commission should investigate jointly with the US Department of Justice.

According to the regulator’s statement, in May Musk was summoned to testify at the agency’s office in San Francisco – the trial was scheduled to take place on September 15. The billionaire initially agreed, but two days later he “suddenly” refused and raised several “false objections,” the SEC said.

Department officials said they tried to negotiate an alternative time and location “in good faith” but were met with “total refusal.”

“None of Musk’s objections are legally binding, and he has no valid justification for not complying with the SEC’s demands,” the document said.

IBCGroup CEO Mario Naufal noted that this is not the first time that US authorities are pursuing the billionaire’s companies.

In late August, the SEC and the Department of Justice began investigating Tesla’s embezzlement of millions of dollars to allegedly secretly build a “spacious glass structure” labeled “Home for CEO Elon Musk.”

The Tesla executive himself called the claims “the funniest thing” he’s heard.

X also had problems with the administration of US President Joe Biden after refusing to hand over Donald Trump’s personal data and information from the social network. The company initially resisted, claiming it violated freedom of speech. However, the court later found the organization’s actions “disrespectful” and imposed a fine of $350,000.

Separately, the Justice Department filed a lawsuit against SpaceX for discrimination against refugees. Authorities claimed that the company deliberately does not invite or hire migrants.

All of these attacks occurred after Musk bought the social network.

The entrepreneur has criticized the SEC before, but he made his position particularly clear in an interview with 60 Minutes in December 2018.

“I have no respect for the Securities and Exchange Commission,” Musk said.

Let us recall that in April 2022, the businessman became the largest shareholder of Twitter after acquiring a 9.2% stake for $2.89 billion. Later, he offered to buy the social network for $43 billion in order to create an “inclusive arena for freedom of speech.”

The $44 billion deal was closed in October. The company’s previous CEO, Parag Agrawal, and its CFO, Ned Segal, have left the company’s headquarters.

In May 2023, Musk announced that he had found his replacement as Twitter CEO. It was former head of NBCUniversal advertising Linda Yaccarino.

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