Court documents show Musk's legal team tried to delay the meeting multiple times. The SEC claims he crossed a line by not securing written permission to reschedule.
The U.S. Securities and Exchange Commission (SEC) is demanding legal and financial sanctions against Elon Musk after he failed to show up for a critical testimony about his $44 billion takeover of Twitter, now known as X.
The SEC is turning up the heat on Musk, pushing him to comply with the investigation, which centers around his actions related to the high-profile acquisition. The SEC has now asked the court to hold Musk in civil contempt for violating a May 2024 court order.
According to court documents, Musk’s legal team attempted to delay the meeting on several occasions. However, the SEC claims that Musk crossed a line by failing to secure written permission to reschedule the meeting. The agency is also seeking to recoup travel expenses and any other penalties that the court may deem appropriate.
Musk’s attorneys are countering the SEC’s move, calling it “drastic” and accusing the agency of overreacting. They maintain that sanctions are unnecessary as the SEC has already scheduled a new testimony for October 3 in Los Angeles.
Musk’s lawyer, Alex Spiro, downplayed the delay as insignificant in the context of a lengthy investigation and attributed Musk's absence to an emergency, promising his attendance at the October session.
However, Musk's regulatory woes extend beyond the SEC. In August, the European Union’s Irish Data Protection Commission sued X, alleging that it violated AI data rules and demanding that it cease harvesting data from European users. In Brazil, the Supreme Court upheld a ban on X, and a prominent MP in the UK is considering summoning Musk to testify on X's content moderation policies.
As several regulators close in on Musk, his handling of X is coming under intense global scrutiny, and the stakes are rising. The SEC’s latest move could be just the beginning of the mounting legal challenges for the billionaire.
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