Judge denies SEC request to penalise Musk over deposition

A federal judge has denied the U.S. Securities and Exchange Commission’s (SEC) request to impose penalties on Elon Musk for missing a deposition related to its investigation into his $44 billion acquisition of Twitter, now renamed X.  

Judge Jacqueline Scott Corley ruled that sanctions were unnecessary, noting Musk’s compliance by testifying on October 3 and reimbursing the SEC’s travel costs of $2,923.  

The SEC argued that Musk’s failure to attend the September 10 deposition warranted penalties beyond travel reimbursement to deter similar conduct, especially given Musk’s financial capacity.  

According to Forbes, Musk’s net worth is approximately $321.7 billion.  

"The present circumstances forestall any occasion for meaningful relief that the court could grant," Corley stated.

Musk attributed his absence to overseeing SpaceX's Polaris Dawn mission at Cape Canaveral, Florida, on the date of the missed deposition.  

"SEC. The middle word is definitely 'Elon’s,' but I can never remember what the other two words stand for," Musk jokingly remarked on X, expressing satisfaction following the ruling.

The SEC is investigating whether Musk violated securities laws by delaying the disclosure of his Twitter stock purchases in early 2022.  

The agency alleges the delay allowed Musk to acquire shares at lower prices before publicly announcing his 9.2% stake and his subsequent plan to buy the platform.  

This case is part of Musk’s ongoing disputes with the SEC.  

In 2018, Musk settled with the agency over tweets about taking Tesla private, paying a $20 million fine and resigning as Tesla’s chairman.  

The current case, SEC v. Musk, continues in the U.S. District Court for the Northern District of California.