The U.S. Securities and Exchange Commission (SEC) is seeking sanctions against Elon Musk due to his absence from a court-ordered testimony related to his acquisition of Twitter.
Last Minute Cancellation
The request follows Musk’s failure to appear for a scheduled testimony on September 10, where he informed the court just three hours prior that he would not attend. Musk was instead in Cape Canaveral, Florida, overseeing a SpaceX mission, according to Digi24.
In a court filing in San Francisco, the SEC claimed that Musk's last-minute cancellation violated a court order issued on May 31, requiring his testimony.
SEC attorney Robin Andrews remarked, “Musk's excuse smells of gamesmanship. The court needs to make it clear that Musk's delay tactics must cease.”
Musk's attorney, Alex Spiro, characterized the potential sanctions as “drastic” and unnecessary, arguing that his absence was due to an unforeseen emergency and asserting that the testimony has been rescheduled for October 3.
Delayed Disclosure
The SEC is investigating whether Musk violated securities laws when he began accumulating Twitter shares in early 2022.
He faced criticism for delaying the disclosure of his 9.2% stake in Twitter, which he eventually revealed after a ten-day wait — longer than the regulatory requirement of reporting upon reaching a 5% ownership threshold. In July, Musk stated that he misunderstood the SEC’s disclosure requirements.
Musk, who has previously settled a $20 million lawsuit with the SEC over his Twitter posts about taking Tesla private, has been in a protracted conflict with the agency. His ongoing challenges include claims that the SEC is attempting to “harass” him through legal summonses.
