Musk or his attorneys are expected to respond by April 4. Elon Musk Musk has the option of dismissing by that date.
Main Points
- Eventually, Musk oversaw the $44 billion purchase of Twitter.
- Elon Musk was served a court summons in connection with the SEC’s lawsuit over his alleged failure to properly disclose Twitter stock purchases in 2022 before purchasing the company.
- According to a filing on Thursday, the summons was delivered on March 14.
According to a filing Thursday, Elon Musk was summoned to court last week in connection with the SEC’s lawsuit over his alleged failure to properly disclose 2022 Twitter stock purchases prior to bidding to buy the company.
A process server delivered the civil summons to Musk on March 14 at SpaceX’s headquarters in Brownsville, Texas, according to the filing. The server reported that when he arrived at the SpaceX facility, three different security guards refused to accept the documents, with one telling him he was trespassing. He “placed the documents on the ground” before leaving while the guards photographed him and his car.
The summons is for a case involving Musk’s eventual purchase of Twitter, now known as X, for $44 billion in 2022. Prior to the acquisition, Musk had built up a position in the company of more than 5%, which would have necessitated disclosing his holdings to the public within 10 calendar days of reaching that level.
According to the SEC’s civil complaint, which was filed in U.S. District Court in Washington, D.C. in January, Musk was more than 10 days late in reporting that material information, “allowing him to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due.”
When Musk took over Twitter, he used the platform to promote then-candidate and current President Donald Trump, as well as other Republican candidates and causes. Musk, Tesla’s CEO, spent $290 million to help Trump return to the White House and now serves as the president’s top advisor.
Musk or his attorneys are expected to respond by April 4. Musk has the option of dismissing by that date.
The requests for comment from EC, Elon Musk, and his lawyer, Quinn Emanuel Partner Alex Spiro, were not immediately answered.
Trump’s administration has directed significant budget and staff cuts to independent federal regulatory agencies, such as the Securities and Exchange Commission. Many of its employees were offered $50,000 if they resigned or retired by March 21.The Trump administration has also repealed a 15-year-old policy that allowed the SEC’s director of enforcement to issue formal orders of investigation. The agency will now require requests for formal orders of investigation to be presented to and approved by a vote of SEC commissioners, which is likely to slow down investigations such as the one that resulted in the SEC’s suit against Musk.
The SEC’s civil securities fraud charges against Musk’s auto company, Tesla, have already been resolved. Musk was compelled to temporarily resign as chairman of the Tesla board, and both Tesla and Musk were hit with $20 million fines.
By :- Next Tech Plus
