Regulatory Body Takes Legal Action Against Musk to Compel Testimony in Investigation

US financial regulators have filed a lawsuit against Elon Musk for refusing to cooperate with their investigation into his purchase of Twitter, which is now known as X. The Securities and Exchange Commission (SEC) has requested that a federal court order Musk to comply with their request for a third session of testimony about the deal. Musk's lawyer sent a letter to the SEC stating that he would not appear as requested and accused the agency of harassment. This legal action is the latest clash between Musk and the SEC, with the agency launching an investigation into Musk's $44 billion purchase of X. The SEC is looking into whether Musk's stock purchases before acquiring the company and his statements about those investments violated securities laws. Musk has already participated in two sessions of testimony via video conference and the SEC claims a third session is necessary due to additional evidence received. Musk's lawyer stated that it is unclear why the SEC requires further time from Musk and that enough is enough. In 2018, the SEC charged Musk with defrauding investors after he claimed in a tweet that he had secured funding to take Tesla private. He eventually settled the charges and accepted limitations on what he could post about the company on social media. Musk has since gone to court multiple times to have these limitations removed. Additionally, a judge in New York recently ruled that Musk must face a lawsuit from former Twitter investors who allege he defrauded them by not promptly disclosing his share purchases, although an insider trading claim was dismissed.