Elon Musk is under investigation
Elon Musk is being investigated by US federal authorities. He reveals a document filed in court by Twitter. The reason for the investigation concerns the forty-four billion dollar agreement for the purchase of Twitter and its management by the CEO of Tesla. The document does not reveal the details of the investigation, nor the specific allegations against Musk, nor exactly which US authorities are involved.Previous chapters
The legal battle between Musk and Twitter it's getting more and more convoluted. In the spring, the two sides had reached an agreement for the purchase and sale of the platform, which would pass under the control of Musk. In May, Musk had backtracked, withdrawing his willingness to buy the social network, citing as a reason the fact that Twitter had lied about the number of bogus bots and accounts present. A back and forth that lasted months followed, in which each side accused the other of hiding documents and evidence. All this was to culminate with a trial scheduled for October 17. On 6 October, the billionaire abruptly reversed course again, saying that, all in all, he wanted to conclude the agreement within the terms set in April. The acquisition of Twitter would serve Musk to accelerate his project to create the elusive "total app".Judge Kathleen McCormack, of the court of Delaware, has given Elon Musk time until 28 October to conclude the sale. If she doesn't, a new trial date will be set in November.
The Security and Exchange Commission (SEC), the US stock exchange regulator, and the Federal Trade Commission (FTC) did not respond to a request for media comment on the revelations of the Twitter document. Alex Spiro, of Musk's legal team, told Reuters "Twitter executives are under federal investigation." Twitter refused to reply.
Elon Musk is being investigated by federal authorities over the $44 billion Twitter deal, the company said in a court filing
© Reuters Billionaire Elon Musk is being investigated by federal authorities, according to Twitter. ReutersBillionaire Elon Musk is being investigated by federal authorities over his conduct in relation to the Twitter acquisition, the company said in a court filing released on Thursday.
In a letter addressed to Judge Kathaleen St. Jude McCormick on October 6, Twitter requested the court compel Musk's team to hand over any correspondence with federal authorities. The request was made the same day that McCormick put the Twitter v. Musk trial on hold.
'This game of 'hide the ball' must end,' the company said in the letter. 'Twitter wants those documents, because they bear upon key issues in this litigation.'
Musk's representatives did not immediately respond to Insider's request for comment made outside normal working hours.
Twitter declined to comment on the filing.
The company did not specify in the letter the exact focus of the investigation, or which federal authorities were conducting them. The letter did, however, reference communications between Musk, the SEC, and the FTC.
In April, the SEC wrote a letter to Musk asking him to explain the delay in disclosing his 9.2% stake in the company.
Alex Spiro, an attorney on Musk's team, told Reuters that Twitter's court filing was a 'misdirection,' adding: 'It is Twitter's executives that are under federal investigation.'
After Musk revived his $44 billion bid for Twitter, McCormick gave the Tesla CEO until October 28 to close the deal. If the deal is not closed by this deadline, a new trial date will be set for November.