A judge has denied the SEC’s request to impose sanctions on Musk for his failure to attend a Twitter deal testimony.
Elon Musk has achieved a significant victory against the Securities and Exchange Commission’s (SEC) by successfully opposing the agency’s attempt to impose sanctions on him for failing to attend court-ordered testimony. This case was about Musk’s $44 billion takeover of Twitter. Things took a sudden turn when Judge Jacqueline Scott Corley decided in his favor, leaving the SEC with no evidence.
The Securities and Exchange Commission (SEC) had requested penalties for Musk’s failure to appear at a scheduled testimony on September 10, 2023. In May 2023, the agency contended that Musk’s absence contravened a court order. Nevertheless, U.S. District Judge Jacqueline Scott Corley expressed her disagreement.
She observed that Musk had already provided testimony on October 3, 2023, and had reimbursed the SEC for $2,923 in travel expenses, rendering sanctions unnecessary.
Judge Corley stipulated that the SEC’s request was without substance. She declared, “The SEC’s request is moot due to the fact that the current circumstances do not provide any opportunity for the court to grant substantive relief.”
In effect, this ruling concluded the matter without imposing any additional penalties on Musk. Musk’s legal team clarified that he was unable to attend the September hearing due to his involvement in managing SpaceX’s Polaris Dawn mission in Florida. His attorneys also underscored that he had fully adhered to the court order by testifying in early October, thereby resolving any apprehensions regarding his absence.
Musk celebrated his victory on X (formerly Twitter) following the ruling. He cited a tweet from a user who commended him for successfully resisting the SEC’s efforts to impose penalties.
Musk’s victory was widely celebrated, particularly among the crypto community. Billy Markus, also known as Shibetoshi Nakamoto, the creator of Dogecoin, referred to the Securities and Exchange Commission (SEC) as an “annoying organization.” The SEC’s ongoing legal dispute with Ripple, which commenced in 2020, was also the subject of criticism by countless XRP enthusiasts who rallied behind Musk.
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