SEC Targets Elon Musk With Legal Sanctions Over Missed Testimony
YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) is pursuing legal sanctions against Elon Musk for not attending a scheduled testimony regarding his $44 billion acquisition of X. The SEC is increasing pressure to ensure Musk complies with regulatory orders.
SEC Seeks Contempt Charges Over X Deal
The SEC is pushing to hold Elon Musk in civil contempt for missing a testimony related to the 2022 Twitter acquisition. Musk was supposed to testify on Sep. 19, 2024, as part of an ongoing investigation. The SEC alleges that Musk’s legal team repeatedly attempted to change the testimony date without following the required procedures.
The SEC now requests the court compel Musk to justify his failure to appear, with the potential for sanctions. The SEC also seeks to recoup travel costs due to the canceled meetings.
Musk’s Legal Team Defends Delayed Testimony
Musk’s attorneys argue that the SEC’s request for sanctions is unnecessary. They stated that the testimony has been rescheduled for Oct. 3, 2024, and that the delay is minor, given that the investigation has been ongoing for over two years.
Musk’s lawyer, Alex Spiro, explained that the previous meeting was missed due to an emergency and reassured the court that Musk would attend the October meeting.
Musk Faces Global Scrutiny Alongside U.S. Regulatory Actions
Musk’s social media platform, X, also confronts challenges beyond the SEC’s legal actions. In Aug. 2024, the Irish Data Protection Commission initiated a lawsuit against X, alleging data protection violations within the European Union, especially concerning user data collection.
In Sep. 2024, the Brazilian Supreme Court upheld a ban on X due to concerns over content moderation. Judge Alexandre De Moraes issued the original order, which remains in effect despite Musk’s efforts to reverse it.
Meanwhile, in the United Kingdom, Dawn Butler, a Labour Party member of parliament, suggested that Musk testify before parliament regarding X’s content moderation policies.
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