US District Judge Jacqueline Scott Corley appeared open to the possibility of requiring Elon Musk to provide additional testimony in the ongoing SEC investigation into his USD 44 billion acquisition of Twitter, now renamed X.
The legal proceedings stem from Musk’s 2022 purchase of the social media platform and involve scrutiny over whether he violated federal securities laws during the transaction.
During the hearing at the United States District Court for the Northern District of California, Musk’s legal team, led by attorney Rachel Frank from Quinn Emanuel Urquhart & Sullivan, argued that the SEC’s demand for further testimony was unnecessary and disruptive to Musk’s responsibilities to his companies. They claimed the regulator’s actions amounted to harassment.
The SEC, on the other hand, maintains that additional questioning is essential after reviewing new documents provided by Musk. The agency’s lawyers expressed that there were more questions to be addressed following Musk’s initial testimonies via videoconference in July 2022.
Judge Corley questioned whether Musk’s business obligations should exempt him from further SEC depositions, reflecting on the appropriateness of the subpoena’s location but not its necessity. The judge's commentary indicated skepticism towards arguments that Musk’s busy schedule should shield him from standard regulatory procedures.
The judge did not reach a decision at the hearing, leaving the matter unresolved for now. The case is the latest development in a prolonged dispute between Musk and the SEC, dating back to 2018 following Musk’s tweet about securing funding for taking Tesla private—a statement that has since resulted in multiple legal challenges.
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