Despite Elon Musk’s earlier attempts to avoid further testifying for the Twitter-takeover investigation, his luck appears to have run out. Reuters reported that in a San Francisco hearing on Thursday, a federal judge shot down Musk’s attorney’s challenge on whether the SEC (Securities and Exchange Commission) officials had the power to issue subpoenas, thus ruling that the exec must therefore comply with the regulator and appear for testimony. US Magistrate Judge Laurel Beeler was quoted saying, “you’ve got one more four-hour deposition, one more day of depositions to survive and it’s over.” Failing that, the judge would have to issue an order.
The SEC’s ongoing probe dives into Musk’s late disclosure of his stake in Twitter — a publicly-traded company back then — which went against the requirements of US securities law. This 10-day delay on the paperwork, along with some potentially misleading information within, may have earned the exec as much as $156 million, according to The Washington Post. Former Twitter shareholders also filed a class-action lawsuit against Musk over his controversial $44 billion takeover of the social media platform, which has since been renamed X.
While it’s unlikely that Musk can skip future testimonies for this case, he would be better off heeding Beeler’s advice, regardless. “It seems unlikely there’s going to be any more hassle,” the judge added, should the world’s richest man “work it out” with the SEC. Whether that would help his case is a whole different matter, of course.
This article originally appeared on Engadget at https://www.engadget.com/elon-musk-will-have-to-testify-in-secs-twitter-probe-after-all-050742127.html?src=rss Despite Elon Musk’s earlier attempts to avoid further testifying for the Twitter-takeover investigation, his luck appears to have run out. Reuters reported that in a San Francisco hearing on Thursday, a federal judge shot down Musk’s attorney’s challenge on whether the SEC (Securities and Exchange Commission) officials had the power to issue subpoenas, thus ruling that the exec must therefore comply with the regulator and appear for testimony. US Magistrate Judge Laurel Beeler was quoted saying, “you’ve got one more four-hour deposition, one more day of depositions to survive and it’s over.” Failing that, the judge would have to issue an order.
The SEC’s ongoing probe dives into Musk’s late disclosure of his stake in Twitter — a publicly-traded company back then — which went against the requirements of US securities law. This 10-day delay on the paperwork, along with some potentially misleading information within, may have earned the exec as much as $156 million, according to The Washington Post. Former Twitter shareholders also filed a class-action lawsuit against Musk over his controversial $44 billion takeover of the social media platform, which has since been renamed X.
While it’s unlikely that Musk can skip future testimonies for this case, he would be better off heeding Beeler’s advice, regardless. “It seems unlikely there’s going to be any more hassle,” the judge added, should the world’s richest man “work it out” with the SEC. Whether that would help his case is a whole different matter, of course.This article originally appeared on Engadget at https://www.engadget.com/elon-musk-will-have-to-testify-in-secs-twitter-probe-after-all-050742127.html?src=rss Read More Company Legal & Law Matters, site|engadget, provider_name|Engadget, region|US, language|en-US, author_name|Richard Lai Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
