The Securities and Exchange Commission has requested sanctions against Elon Musk for failing to appear in a deposition related to his 2022 Twitter acquisition, with the SEC investigating possible securities fraud in connection with the deal. Musk’s attorney argues that rescheduling was agreed upon due to an emergency, and Musk and his companies are cooperating with the SEC in other ongoing investigations. Additionally, Musk is facing a civil lawsuit in New York for allegedly concealing his investments in Twitter, with corresponding messages suggesting his buying strategy was closely held and unknown to others involved.
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Delaware Law Has Entered the Culture War
The corporate law world, typically insular, has become a battleground due to Elon Musk's clash with the Delaware Chancery Court and subsequent moves by Dropbox and Meta to change their incorporation locations. The issue of minority shareholder influence in controlled companies has been amplified as founders like Musk voice their opinions. Delaware's economy and politics are at stake as businesses consider moving away from the state, prompting legislative changes and potential concessions to retain corporate...
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