WILMINGTON, DE: According to a court filing Twitter released on Thursday, Elon Musk is under investigation by federal authorities for his conduct during the $44 billion takeover of the social media company.
While the filing stated that he was being investigated, it did not specify the nature of the investigations or which federal agencies were conducting them.
Twitter, which sued Musk in July to force him to close the deal, said Musk’s attorneys claimed “investigative privilege” when refusing to turn over documents it requested.
According to Twitter, Musk’s lawyers gave a “permission log” detailing the papers to be withheld in late September. A slide presentation for the Federal Trade Commission and a draught email sent to the US Securities and Exchange Commission (SEC) on May 13 were both mentioned in the log (FTC).
The business stated in the court document that “this game of ‘hide the ball’ must end.”
On October 6, the day after Musk changed his mind and declared he would move forward with the sale, the court filing asking Delaware judge Kathaleen McCormick to order Musk’s lawyers to produce the documents was submitted.
According to Alex Spiro, an attorney for Musk, Twitter’s court filing was a “misdirection” and stated that “Twitter’s executives are under federal investigation,” not Twitter itself.
Twitter chose not to respond to Spiro’s assertion. It also declined to comment when Reuters questioned it regarding any Musk-related investigations.
An inquiry for comments was not immediately answered by the SEC, while the FTC declined to comment.
The SEC has raised concerns about Musk’s remarks regarding the purchase of Twitter, including whether or not a 9% interest he had amassed before making his bid had been reported timely and why it suggested he intended to be a passive shareholder. Later, Musk amended the declaration to reflect his active investor status.
In a letter sent in June, the SEC asked Musk if he should have amended his public filing to reflect his intention to suspend or abandon the deal.
According to The Information, a tech news site, the FTC is investigating whether Musk failed to comply with the antitrust reporting requirement relating to an investor’s intention to be a passive or active shareholder.
However, Twitter announced in June that the takeover agreement with Musk had cleared an antitrust waiting period for review by the FTC and US Justice Department. read more
McCormick has given Musk until October 28 to complete the acquisition. If the deal is not completed by then, a trial date will be set for November.
Pavan Manzoor is an experienced content writer , editor and social media handler along with a track record of youth-oriented activities in Pakistan and abroad. She was selected as a fully-funded delegate as a leadership fellow in Turkey. She also led a team of 5 volunteers at the week-long Young Professionals Fellowship in Maldives. She is also a member of the Youth Standing Committee on Higher Education.
