Elon Musk’s Twitter Deal Is The Subject Of A Federal Investigation
In contrast, the billionaire’s lawyers said that Twitter is under investigation.
Elon Musk, the billionaire CEO of Tesla and SpaceX, is being probed by federal authorities about his activities around the $43 billion acquisition of Twitter.
This is according to a new complaint by Twitter, which aims to uncover crucial papers that Musk is supposedly concealing from the company.
According to Reuters, it remains unclear what the inquiry is focused on and which government agencies are pursuing it.
Twitter said that Musk refused to give up the requested information in September, claiming “investigatory privilege.” In particular, Musk’s lawyers produced a “privilege log” of confidential papers, such as a May draught email to the U.S. Securities and Exchange Commission (SEC) and a slide show presentation for the Federal Trade Commission (FTC).
The SEC did not reply to a request for comment from Reuters, while the FTC refused to comment. “This ‘hide the ball’ game must cease,” Twitter said in its court statement.
The motion requested a Delaware judge, Katharine McCormick, to issue an order requiring Musk’s lawyers to deliver the requested papers. It was submitted on the 6th of October, just as the same court halted litigation between Musk and Twitter after Musk chose to proceed with the acquisition.
Musk’s attorney, Alex Spiro, said that Twitter’s lawsuit is just misleading the public. “Twitter executives are the subject of a federal inquiry,” he stated. Twitter did not comment on Spiro’s statement when asked.
McCormick has given Musk until the 28th of October to complete the Twitter purchase, failing which a trial date would be determined the following month.
After announcing a 9% investment in Twitter in April and refusing a seat on its Board of Directors, Musk moved swiftly to acquire the whole business later that month. Musk apparently attempted to back out of the contract, despite Twitter’s acceptance, since Twitter provided inadequate information regarding spam bots on its site.
Twitter replied by suing Musk to enforce the agreement, which he has recommitted to fulfilling. Musk has demonstrated interest in making Twitter a refuge for free expression and making it more decentralised, in addition to combating spam bots. In March, the billionaire contacted a number of crypto industry experts, including Jack Dorsey and Sam Bankman-Fried, to explore how this may be feasible.