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Elon Musk sued by SEC over refusal to testify in his purchase of Twitter

The US Securities and Exchange Commission (SEC) has sued Elon Musk to force him to testify in the agency’s probe of the purchase of X, formerly known as Twitter.

The lawsuit claims Musk defrauded former Twitter shareholders last year by waiting too long to disclose that he had invested in the social media company.

US District Judge Andrew Carter said it can be proven that Musk intended to defraud shareholders by waiting 11 days past a SEC deadline to reveal he had bought 5 percent of Twitter’s shares.

Musk’s lawyers have argued that he is “one of the busiest people on the planet” and that any failure to disclose the purchase to shareholders was “inadvertent.”

Musk has refused to testify.

The judge also dismissed an insider trading claim against Musk.

Twitter shareholders – led by an Oklahoma firefighters pension fund – said Musk saved more than $200 million by adding to his Twitter stake and not disclosing his plans.

He finally announced a 9.2 percent stake in April 2022.

The shareholders also said they sold their Twitter shares at low prices because Musk hid his plans.

The judge in the case said he could not say if Musk was “too busy” to comply with SEC rules if he could also find the time to buy Twitter shares, meet with executives, and post to social media.

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