Tesla and Spacex CEO Elon Musk is under federal investigation for his conduct in connection with the $44 billion acquisition of Twitter, according to a court filing from the social media giant. Twitter states that “through an attorney, he has exchanged substantive correspondence with those authorities regarding their investigation of him.”
Federal authorities are investigating Elon Musk, says Twitter
Twitter revealed in a court filing released Thursday that Tesla CEO Elon Musk is under federal investigation in connection with his $44 billion bid to buy the social media platform.
In a letter dated Oct. 6 to Judge Kathaleen St. Jude McCormick, who is overseeing the company’s case against Musk, Twitter’s lawyers said they have been asking Musk for documents related to the investigation since Oct. 22. July. The lawyers wrote:
Elon Musk is currently under investigation by federal authorities for his conduct in connection with the Twitter acquisition. Through an attorney, he has exchanged substantive correspondence with those authorities regarding their investigation of him.
Emphasizing that those documents “address key issues in this litigation,” the attorneys emphasized: “Twitter requested the production of those documents months ago. But with trial just 11 days away, [the] the accused have not yet presented them.”
In their letter, Twitter’s lawyers also referred to a letter the Securities and Exchange Commission (SEC) allegedly sent to Musk in June. According to Twitter, the SEC was seeking information related to a tweet Musk posted in May stating that the “settlement cannot move forward” until the social media company provides more information about spam and fraudulent accounts on the platform.
The SEC also investigated Twitter over the company’s method of identifying spam accounts. In a letter dated July 27, the SEC told Twitter: “We have completed our review of your filings. We remind you that the company and its management are responsible for the accuracy and adequacy of its disclosures, notwithstanding any review, comment, action or inaction by staff.”
Musk originally agreed to buy Twitter in April for around $44 billion. However, he subsequently tried to back out of the agreement, accusing Twitter of a material breach of the agreement. He officially rescinded his offer to buy Twitter in July, saying the social media company hadn’t been transparent about the number of bots and fake accounts on his platform. Musk outlined multiple reasons for ending the deal.
Twitter subsequently sued the CEO of Tesla to force him to close the deal. Musk responded to Twitter. The two sides were scheduled to go to trial in Delaware Chancery Court on October 17.
However, last week Musk said he would buy Twitter at the agreed price of $54.20 per share. The court gave him until October 28 to close the acquisition and avoid a trial. Musk said that the purchase of Twitter will accelerate the creation of “X, the application of everything”.
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