Wednesday, September 27, 2023

The SEC is investigating Elon Musk over Twitter announcement

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The same day the court granted a stay of litigation to allow Twitter and Mr Musk to close the takeover deal, the court request was filed.

A federal investigation is underway into Elon Musk’s $44 billion acquisition of Twitter.

A court filing made public on Thursday about the latest in ongoing legal disputes between the billionaire and the social network was the source of the news.

Though the filing said he was being investigated, it didn’t say what the focus was.

‘This game of hide-and-seek must end,’ the firm said in the court document.

Musk did not immediately reply to a request for comment.

Tesla CEO Elon Musk’s lawyers are claiming ‘investigative privilege’ in order to deny Twitter the documents it wants.

Tesla said it requested that Musk’s lawyers produce their communications with federal authorities months ago, but they did not.

Lawyers for Mr. Musk handed over a ‘privilege log’ late last month, identifying documents to be withheld.

An email sent to the US Securities and Exchange Commission (SEC) on 13 May was cited in the draft as the source of a log.

The FTC, whose primary objective is to enforce antitrust laws and protect consumers, was also mentioned in the slide show.

The request to the court was filed on the same day the court granted a stay of litigation to allow Twitter and Mr. Musk to close the takeover deal.

There are concerns about the agreement.

The SEC is questioning Mr. Musk’s comments about the Twitter acquisition.

The SEC queried him in April whether revealing his 9% share in Twitter was late, and if so, why he would be a passive shareholder. Musk later re-filed the declaration to indicate that he was an active investor.

The SEC asked Mr. Musk in June whether he should have updated his public declaration to express his desire to terminate or abandon the merger.

According to Reuters, Alex Spiro, an attorney for Mr. Musk, said that Twitter’s court filing was a “misdirection”.

The corporation’s top executives are the ones being scrutinized by federal investigators, he said.

Twitter refused to comment on the statement.

Tesla’s new filing reveals that the company is still involved in the long-running tussle over Elon Musk’s proposed purchase of Twitter. During the battle, Musk proposed the acquisition, then backed down, and was then sued by Twitter to uphold his words.

Days before a trial was set to force the purchase through, the billionaire’s side said that he would go ahead with the deal.

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