SEC launches investigation into Elon Musk's purchase of Twitter

The U.S. Securities and Exchange Commission (SEC) is investigating Elon Musk's $44 billion takeover of social media giant Twitter, which he renamed X, and has sought to compel Musk to testify1. The investigation concerns whether Musk broke federal securities laws in 2022 when he bought stock in Twitter and the statements and SEC filings he made in relation to the deal1. According to a court filing, the SEC subpoenaed Musk in May 2023, requiring him to provide testimony at the SEC's San Francisco office1. Musk agreed to appear on September 15, but two days beforehand, he raised objections and told the SEC he would not appear1. The SEC is now suing Musk, claiming he did not comply with the subpoena to testify3. The case is tied to Musk's purchase of Twitter last year and the stock trading surrounding the acquisition3. Musk's attorney, Alex Spiro, stated that the SEC has already taken Musk's testimony multiple times in this investigation and that "enough is enough"3. The SEC, however, is seeking "Musk’s testimony to obtain information not already in the SEC’s possession that is relevant to its legitimate and lawful investigation"1. A hearing on the filing is scheduled to take place on November 93.
What is the SEC's investigation into Elon Musk's Twitter purchase about?
What is the latest update on the SEC's investigation into Elon Musk's Twitter purchase?
What are the potential consequences of Elon Musk's refusal to testify in the SEC's investigation into his Twitter purchase?