In a dramatic escalation of their ongoing conflict, Twitter’s chief ownership stakeholder, Elon Musk, has been ordered by a US federal judge to comply with a subpoena issued by the U.S. Securities and Exchange Commission (SEC) and testify regarding his acquisition of the social media giant.
Musk, a figure no stranger to controversy, is now required to cooperate fully with the SEC’s inquiry or face the consequences.
Battle of Forces: SEC vs Musk
The court’s order arrived following Musk’s absence for a scheduled testimony last September and subsequent refusal to attend a revised session, causing the SEC to institute a lawsuit.
Amid this highly contentious clash, US Magistrate Judge Laurel Beeler backed the regulatory body, dismissing Musk’s allegations of unnecessary and invasive questioning.
The Tesla CEO had asserted the probe was tantamount to harassment and the subpoena was demanding irrelevant details.
Despite being previously questioned twice about his microblogging behemoth acquisition, the SEC revealed it had obtained additional documents warranting further inquiries.
Challenging the Authority
Musk escalated the situation by challenging the subpoena’s legitimacy, asserting it surpasses the SEC’s jurisdiction as it was not issued directly by the SEC’s Director of Enforcement, but delegated to a staff member.
This move by Musk was struck down by Judge Beeler, insisting that the subpoena observes the regulative framework, thereby demanding Musk’s compliance with the probe.
Twists and Turns
This order signals another turn in the intricate dance between Musk and federal regulators since his startling takeover of Twitter.
The probe was kick-started by the SEC due to concerns about Musk’s delay in announcing his substantial stake in the microblogging platform.
Musk and the SEC are allotted a week to harmoniously settle on the date and location for Musk’s testimonial. Failing to reach a consensus within the stipulated time frame implies it will be determined by outside parties.
As the plot thickens, industry observers and investors worldwide are keenly watching the drama unfold.
In conclusion, the order reinforces regulatory bodies’ commitment to transparency and the proper execution of procedures in high-stake business transactions.
It remains to be seen how the battling billionaire will respond and whether this episode will mark a turning point in the relationship between Musk and regulatory bodies.
A writer, editor, and publisher with a knack for crafting informative articles.