After the billionaire stated he would no longer assist with their probe into his acquisition of Twitter, now known as X, financial officials in the US filed a lawsuit against him.
He must appear for a third session of testimony about the deal, according to the Securities and Exchange Commission (SEC), which has requested a federal court to issue a court order compelling him to do so.
After receiving a letter from Mr. Musk’s attorney alleging that his client had refused to show up as required, the decision to suit was made.
It alleged “harassment” from the SEC.
“Unchecked government activity is risky, and this place’s track record is concerning. Mr. Musk rejects the Commission’s intrusions and, as a result, refused to appear as you want, according to attorney Alex Spiro.
The legal action is the latest battle between the SEC and Mr. Musk, who once said he had “no respect” for the agency on national television.
Last year, the SEC began looking into Mr. Musk’s $44 billion acquisition of X.
According to a document filed in federal court in San Francisco, the government is looking into whether statements he made and stock purchases he made in 2022 before buying the business outright violated securities laws.
After being summoned, Mr. Musk took part in two half-days of testimony via video conference in July, according to the SEC. Nearly half of the case-related materials the agency had received arrived after those discussions, the agency claimed, necessitating yet another meeting.
It was said in a letter from Mr. Musk’s counsel to the organization that it was “clear why the staff requires further time diverting Mr. Musk from his significant obligations to companies and shareholders…Enough is enough.” The letter was shared as part of the evidence.
The SEC and Mr. Musk have already clashed.
By asserting in a Tweet that he had “funding secured” to take Tesla, the electric vehicle firm he runs, private, it accused him of cheating investors in 2018.
Later, he settled the allegations, resigning as the company’s board chairman and accepting a “Twitter sitter,” or restrictions on what he could say about the business on social media.