SEC intends to impose sanctions on Musk for non-compliance with testimony!.THANHDUNGIt was the second time the billionaire tech mogul skipped out on testifying for the probe of the acquisition of the social media site now known as X.
The Securities and Exchange Commission plans to seek sanctions against Elon Musk after he missed previously scheduled testimony for the regulator’s investigation into his $44 billion purchase of Twitter, according to a court filing.
It was the second time the billionaire tech mogul skipped out on testifying for the probe of the acquisition of the social media site now known as X.
“The Court must make clear that Musk’s gamesmanship and delay tactics must cease,” SEC attorneys wrote in the filing.
Musk was slated to testify on the morning of Sept. 10 at the SEC’s Los Angeles office, the agency wrote in the filing, adding that three of its own attorneys had flown in the day before. However, just hours before the testimony’s scheduled start, one of Musk’s attorneys notified the SEC that he would not be able to attend because he had to “urgently travel” to Cape Canaveral, Florida, the day before for SpaceX’s latest launch, Polaris Dawn, according to the filing.
The SEC wants Musk to be held in contempt for waiting so long to alert the agency that he would not be in attendance for the testimony. It’s also seeking to recover its travel costs and for other relief deemed appropriate by the court.
Alex Spiro, an attorney for Musk, called the situation “an unavoidable emergency” in the filing. The SpaceX CEO’s presence, he said, was required to oversee the launch in person due to the risks for the astronauts aboard the spacecraft.
He added that sanctions would be “drastic” and that Musk and the SEC have already settled on a date for the rescheduled testimony in October.
The incident marks yet another clash between Musk and the SEC, which have regularly feuded throughout the last decade.
In the most infamous case, the Tesla CEO tweeted in 2018 about a deal to take the electric car maker private at $420 per share. The SEC later alleged that the claims were misleading, ultimately resulting in a $20 million settlement with Musk that also forced him out as Tesla’s chair.
Musk went on “60 Minutes” shortly after the settlement and declared that he does “not respect the SEC.”
Spiro did not immediately respond to a request for further comment. An SEC spokesperson declined to comment.
