US Securities and Exchange Commission files for sanctions against Elon Musk: Did he manipulate X shares?

12PUNTO FOREIGN NEWS

In a filing with the San Francisco federal court, the SEC requested that sanctions be imposed on X CEO Elon Musk, who did not appear at a hearing he was scheduled to attend on September 10. If the court accepts the request, Musk could be charged with 'contempt of court'.

Musk, who owns a group of companies including electric vehicle manufacturer Tesla, had traveled to Cape Canaveral, Florida, on September 10 to oversee the 'Polaris Dawn' launch mission of his rocket company, SpaceX. SpaceX had sent astronauts into space on September 10 as part of the Polaris Dawn mission.

However, the SEC stated that Musk's failure to attend the hearing violated a May 31 court order that mandated his testimony.

Speaking to Reuters, SEC attorney Robin Andrews stated, 'Musk's excuse reeks of gamesmanship,' adding, 'The court should make it clear that Musk's gamesmanship and delay tactics must end.'

DID MUSK MANIPULATE THE STOCK MARKET BEFORE BUYING TWITTER?

The SEC is investigating whether Musk violated securities laws when he began accumulating Twitter shares in early 2022.

Musk had been criticized by many, including Twitter shareholders, for waiting at least 10 days before disclosing that he had purchased Twitter shares.

If the allegations are true, this would mean that Musk manipulated stock market shares prior to the acquisition. If the court rules in this direction, the famous businessman could face heavy penalties.

Musk's attorney Alex Spiro described the requested sanctions as 'harsh' and unnecessary, claiming that Musk's absence from the launch could have endangered the lives of the astronauts. Spiro stated that his client would attend the hearing scheduled for October 3 to provide testimony.

In a message he posted on X, Spiro wrote that Musk's failure to testify on September 10 was due to an 'emergency' that he did not cause, and that 'there is no reason to believe such an emergency will happen again.'

News Source: 12punto