The United States Securities and Exchange Commission (SEC) sued billionaire Elon Musk, after he refused to testify about the deal to acquire X.
Mr. Musk’s response did not take long. He called for a “comprehensive overhaul” of the SEC’s operations and for the creation of a commission to take action against individuals who have abused their regulatory power for personal and political ends.
A comprehensive overhaul of these agencies is sorely needed, along with a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain.
Can’t wait for this to happen.
— Elon Musk (@elonmusk) October 5, 2023
The businessman also suggested that the Commission should conduct the investigation jointly with the U.S. Department of Justice.
According to the regulator’s statement, in May Musk was summoned to testify at the agency’s San Francisco office — the hearing was scheduled for September 15. The billionaire initially agreed, but two days later he “suddenly” refused and raised several “false objections,” the SEC said.
Representatives said they had tried to negotiate in good faith to arrange an alternative time and place, but faced a “complete refusal”.
“None of Musk’s objections has any legal force, and he has no substantial justification for not complying with the Securities and Exchange Commission’s demands,” the document states.
Mario Nawfal, CEO of IBCGroup, noted that this is not the first time US authorities have pursued the billionaire’s firms.
In late August the SEC and the DOJ began an investigation into the alleged misappropriation of millions of dollars at Tesla to secretly construct a “spacious glass house” bearing the inscription “Home for Elon Musk, the CEO”.
The Tesla chief himself called the allegations “the most amusing thing I’ve heard”.
X also ran afoul of President Joe Biden’s administration after refusing to hand over personal data and information from Donald Trump from the social network. The company initially resisted, arguing that it infringed on free speech. However, a court later deemed the company’s actions “disrespectful” and fined $350,000.
Separately, the Justice Department filed a lawsuit against SpaceX for discriminating against asylum seekers and refugees. Authorities claimed the company intentionally did not invite or hire migrants.
All of these attacks followed Musk’s purchase of the social network.
The entrepreneur had criticized the SEC before, but he articulated his position most clearly in an interview on 60 Minutes in December 2018.
“I have no respect for the SEC”
Elon Musk
— Tesla Owners Silicon Valley (@teslaownersSV) October 5, 2023
“I have no respect for the Securities and Exchange Commission,” Musk stressed.
As noted, in April 2022 the entrepreneur became the largest shareholder of Twitter after the acquisition of 9.2% of the shares for $2.89 billion. Later he proposed to buy the social network for $43 billion to create ‘an inclusive arena for freedom of speech’.
The deal worth $44 billion closed in October. The former CEO Parag Agrawal and its CFO Ned Segal left the headquarters.
In May 2023 Musk announced that he had found a replacement as Twitter’s CEO. It was Linda Yaccarino, the former head of NBCUniversal’s advertising division.