The Securities and Exchange Commission (SEC) has announced its intent to pursue sanctions against Elon Musk following his failure to appear and testify in court amid the agency’s investigation into his $44 billion acquisition of Twitter, now renamed X.
The SEC is requesting a court order to justify why the Tesla CEO and SpaceX owner should not be held in civil contempt, as reported by Reuters. This request follows Musk’s decision to cancel his scheduled September 10 testimony just three hours before it was set to occur, violating a May 31 court order that compelled his testimony, according to the filing in San Francisco federal court.
Instead of attending the court appearance, Musk traveled to Florida’s Cape Canaveral to observe the launch of SpaceX’s Polaris Dawn mission on the same day. SEC lawyer Robin Andrews commented on Musk’s actions, stating, “Musk’s excuse itself smacks of gamesmanship,” and emphasizing that the court needs to address Musk’s alleged delay tactics.
The SEC declined to provide additional comments to FOX Business. Musk’s attorney, Alex Spiro, attributed his client’s failure to testify to an unforeseen “emergency” beyond Musk’s control, asserting that there is no reason to expect a recurrence of such an emergency. Both X and Spiro have been contacted for further comment by FOX Business.
In July, Musk admitted to misunderstanding SEC disclosure requirements, indicating that his delay was due to a “mistake.” In October 2023, the SEC filed a lawsuit after Musk missed a scheduled interview at the agency’s San Francisco office. Musk has previously accused the SEC of attempting to “harass” him with subpoenas.
