Elon Musk Is Under Federal Investigation For His Conduct In $44bn Twitter deal

According to the latest news, Elon Musk is under a federal investigation regarding his conduct in the $44bn Twitter deal. Twitter, the social media company has stated this in a court filing made public on Thursday.

Elon Musk Again In Hot Waters Due To His Conduct In Twitter Deal

The filing only said that Elon Musk was under investigation, however, it did not say which federal authorities were investigating. According to the attorneys, Twitter sued Musk in July to force him to close the deal. However, Tesla’s CEO claimed, “investigative privilege” by refusing to hand over documents it had sought.

After that in late September, Musk’s attorneys came up with a privilege log identifying documents to be withheld. According to Twitter, the log referenced drafts of a 13 May email to the US Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC). The company stated in the court filing that:

“This game of ‘hide the ball’ must end”

Previously, the SEC questioned Musk’s comments about the Twitter acquisition. Furthermore, the SEC asked Musk why the disclosure of his 9% Twitter stake was late and why it shows that he intended to be a passive shareholder. Later on, Elon refiled the disclosure to indicate he was an active investor. The SEC further asked Musk in a letter whether he should have amended his public filing to reflect his intention to suspend or abandon the deal.

Alex Spiro, an attorney for Musk, told:

“Twitter’s court filing was a “misdirection … It is Twitter’s executives that are under federal investigation.”

The social media company declined to comment on Spiro’s statement. Even though, Musk’s side stated that he would go ahead with the deal, days before a trial was set to take place to force the purchase through. Elon is supposed to be securing financing to complete the purchase.

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