In a San Francisco courtroom on Thursday, lawyers for Elon Musk, the CEO of Tesla and SpaceX, argued against the U.S. Securities and Exchange Commission (SEC) seeking to compel Musk’s testimony in the agency’s investigation into his $44 billion acquisition of Twitter in 2022. U.S. District Judge Jacqueline Scott Corley indicated a willingness to require Musk to testify, despite his previous refusal to participate in an interview for the investigation.
The SEC filed a lawsuit against Musk in October, seeking to enforce his testimony after he declined to attend a September interview, citing what he termed as harassment by the SEC through multiple subpoenas.
Although Judge Corley did not issue a decision during Thursday’s hearing, she expressed concerns about the location of Musk’s deposition, questioning why it had to be conducted at an SEC office.
The investigation revolves around whether Musk violated federal securities laws in 2022 when he purchased stock in Twitter, later renamed X. It also examines statements and SEC filings made by Musk regarding the deal.
Musk previously provided documents and testified via videoconference for two half-day sessions in July 2022. The SEC, however, asserts that it has additional questions for Musk following the receipt of new documents and has sought further testimony.
Rachel Frank, Musk’s lawyer from Quinn Emanuel Urquhart & Sullivan, argued that compelling Musk to provide additional testimony would burden him and detract from his obligations to shareholders.
Addressing Musk’s busy schedule overseeing multiple companies, Judge Corley questioned whether he should be exempt from securities laws and further investigations.
Musk did not immediately respond to requests for comment.
Thursday’s proceedings mark the latest chapter in a long-standing conflict between Musk and the SEC, dating back to 2018 when Musk tweeted about having “funding secured” to take Tesla private.
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