Judge Rejects SEC Sanctions Against Elon Musk in Twitter Probe

A federal judge dismissed the SEC's request to sanction Elon Musk for missing court-ordered testimony in a probe into his $44 billion Twitter acquisition. Musk later testified and agreed to cover the SEC's travel costs. The investigation centers on potential disclosure law violations relating to Musk's Twitter stock accumulation.

In a recent development, a federal judge has turned down the U.S. Securities and Exchange Commission's attempt to penalize Elon Musk following his failure to testify in a scheduled court appearance. The case is part of an SEC investigation into Musk's $44 billion purchase of Twitter.

Judge Jacqueline Scott Corley, from a San Francisco district court, deemed sanctions unnecessary since Musk complied later by testifying and compensating the SEC's travel expenses. The judge noted that the SEC's request for sanctions was effectively moot under current circumstances.

The SEC argued Musk violated a court order by initially missing the testimony date. The case hinges on whether he breached securities laws by delaying the disclosure of his accruement of Twitter stock, arguably allowing him to purchase shares at a reduced price.

(With inputs from agencies.)