Danish Kapoor
Danish Kapoor

Elon Musk will go to court over the Twitter acquisition process

Elon Musk will go to court because of Twitter, or its new name, X. Last December, an interim decision was made by the US Securities and Exchange Commission (SEC) for Musk to testify in court within the scope of the investigation into the takeover of Twitter by Musk. This decision was approved by a federal judge in the United States.

According to the decision announced at the weekend, Musk and the SEC must determine a time and place for Musk’s statement within a week. Otherwise, the place and time will be determined by the court. The SEC has been investigating a takeover of the platform by Musk since 2022 due to concerns raised by Musk’s late announcement of his acquisition of Twitter shares.

Musk did not appear in court to testify in September and later refused to attend a rescheduled deposition. After this, the SEC also filed a complaint against Musk. Judge Laurel Beeler also found the complaint submitted by the SEC justified. Musk had previously argued that he had testified within the scope of the investigation and therefore did not need to appear in court again.

Elon Musk: SEC exceeds its authority

However, the SEC stated that it had obtained new documents within the scope of the investigation and had other questions for the owner of X. Elon Musk claimed that the subpoena was issued by a staff member appointed by the SEC director and therefore exceeded the SEC’s authority. Despite this, arbitrator Beeler ruled that the subpoena was valid and dismissed these claims. It remains to be seen whether Musk will resist the court decision.

Danish Kapoor