In an effort to compel the billionaire to testify over his purchase of Twitter last year, the U.S. Securities and Exchange Commission sued Elon Musk on Thursday.
Musk allegedly neglected to show up for a testimony on September 15 as required by a subpoena, which SEC attorneys claim was served on the Tesla CEO in May 2023, according to a complaint lodged in the Northern District of California.
According to the SEC, the probe is largely focused on determining whether someone committed securities fraud when buying Twitter shares last year, which was also the time when Musk was purchasing stock in the company. In an agreement worth about $44 billion, Musk completed the acquisition of Twitter, now known as X, in October.
The lawyers said in the complaint that Musk’s continued defiance of the SEC’s administrative subpoena was impeding and prolonging the staff’s investigation into potential violations of the federal securities laws. In light of this, the SEC has asked the court to order Musk to provide testimony in an investigation.
The SEC stated that it made an effort to identify a mutually convenient time and location for a meeting with Musk, including suggesting that they meet at the SEC office in Fort Worth, Texas, which is “the nearest SEC office to Musk’s current personal residence” in the Austin region. For this year’s October and November, a number of times have been suggested.