Elon Musk, CEO of SpaceX and Tesla and owner of X, attended the Milken Institute Global Conference 2024 in Beverly Hills, California, on May 6, 2024. However, Musk now faces potential sanctions from the Securities and Exchange Commission (SEC) for not complying with a court-ordered deposition related to his 2022 acquisition of Twitter, now known as X. The SEC has been investigating possible securities fraud as Musk sold Tesla shares and bought Twitter stock before the buyout.
The court mandated Musk to appear for a deposition by the SEC in May. Despite this, Musk missed a September 2023 deposition and again failed to show up for a recent one, prompting SEC attorney Robin Andrews to request judicial sanctions. Andrews criticized Musk for his “gamesmanship and delay tactics,” noting that his cancellation for a September deposition cost the SEC significant resources.
The SEC has rescheduled Musk’s deposition for early October at their office, cautioning that further court action may be necessary to ensure his compliance. In response, Musk’s lawyer, Alex Spiro, claimed the SEC and Musk had an agreement allowing rescheduling due to emergencies, and emphasized Musk’s ongoing cooperation with other SEC investigations.
Separately, Musk faces a civil lawsuit from the Oklahoma Firefighters Pension and Retirement System. The lawsuit alleges that Musk’s secretive accumulation of Twitter shares and intentions to buy the company disadvantaged other shareholders. Evidence from this case includes messages showing that only Musk and his money manager, Jared Birchall, were aware of Musk’s actions regarding Twitter investments, according to correspondence from a Morgan Stanley contact in February 2022.
Original Story https://www.cnbc.com/2024/09/20/sec-says-musk-should-be-sanctioned-if-he-keeps-dodging-twitter-depositions.html
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