The deal between Elon Musk and Twitter is far from sealed. After the tug-of-war, US federal authorities are now investigating Elon Musk as well.
Elon Musk is being investigated by federal authorities for his conduct in the $ 44 billion acquisition of Twitter Inc., the social media company said in a statement released Thursday. While the filing says it’s under investigation, it doesn’t say exactly what the investigation is focused on or what federal agencies are conducting it.
Twitter, which sued Musk in July to force him to complete the deal, said lawyers for the Tesla boss invoked the investigative privilege when they refused to hand over the required documents. In late September, Musk’s lawyers filed a “protocol of privilege” listing the relevant documents, according to Twitter. The transcript involved drafts of a May 13 email to the United States Securities and Exchange Commission (SEC) and a slide presentation for the Federal Trade Commission (FTC). “This hide and seek game has to stop,” the company said in the court filing.
Musk’s attorney says it’s a “wrong” request.
The court filing, which requires Delaware judge Kathaleen McCormick to order Musk’s attorneys to provide the documents, was filed on Oct.6, the same day McCormick suspended litigation between the two parties after Musk declared that his had changed course and declared that he would go on with the company.
Alex Spiro, a lawyer for Musk, told Reuters that Twitter’s request was “misleading”, claiming that “they are Twitter executives that federal authorities are investigating.” Twitter declined to comment on Spiro’s statement.
The SEC questioned Musk’s comments on the Twitter acquisition, including whether a 9% stake he built before announcing his offer was revealed too late and why it was said he intended to be a passive shareholder. Musk later corrected the disclosure by claiming to be an active investor.
Deadline until October 28th
In June, the SEC wrote to Musk asking him if he should change his public statement to clarify his intention to suspend or close the business. Technical news site The Information reported in April that the FTC is investigating whether Musk has not complied with antitrust reporting requirements regarding an investor’s intention to be a passive or active shareholder.
However, Twitter said in June that the deal with Musk had survived an antitrust waiting period for review by the FTC and the U.S. Department of Justice.
McCormick has given Musk until October 28 to complete the acquisition. If the agreement does not materialize by that date, the trading date will be set for November.
(Reuters)
