SEC Seeks Sanctions Against Elon Musk for Defying Court Order in Twitter Acquisition Probe

The SEC has asked a federal judge to sanction Elon Musk for repeatedly violating a court order requiring him to attend a deposition related to his 2022 Twitter acquisition. The agency’s filing, made public Friday, stated that Musk cancelled a deposition last minute, wasting SEC’s time and resources. The SEC is investigating whether Musk or his associates engaged in securities fraud during his sale of Tesla shares and acquisition of Twitter.

In May, Musk was ordered to appear for a deposition, yet he failed to comply twice—once in September 2023 and again recently, defying a court order. SEC attorney Robin Andrews requested sanctions if Musk continues to delay, stating that his tactics must cease. Musk’s deposition is now rescheduled for early October.

Musk’s lawyer, Alex Spiro, argued that rescheduling was agreed upon due to an emergency and deemed sanctions unnecessary. Separately, Musk faces a lawsuit from the Oklahoma Firefighters Pension and Retirement System, accusing him of withholding his plans to buy Twitter and influencing other shareholders’ decisions. Discovery in that case revealed secretive discussions between Morgan Stanley and Musk’s financial advisor.