In this article, we are going to be covering all the details about the Elon Musk federal investigation you need to know, which popped up because of the Twitter deal.
Elon Musk is being probed by federal authorities for his role in Twitter Inc‘s $44 billion buyout, the social media company said in a court statement on Thursday. While the document said that he was being investigated, it did not specify the nature of the investigations or which federal agencies were conducting them. Twitter, which sued Musk in July to force him to finalize the purchase, said Musk’s attorneys claimed “investigative privilege” while refusing to turn over information it had requested.
Elon Musk federal investigation explained
According to Twitter, Musk’s attorneys sent a “privilege log” indicating documents to be withheld in late September. The log included drafts of an email to the Securities and Exchange Commission (SEC) on May 13 and a PowerPoint presentation to the Federal Trade Commission (FTC). “This ‘hide the ball’ game must end,” the business stated in the court statement. The court petition, which urged Delaware Judge Kathaleen McCormick to force Musk’s attorneys to release the records, was issued on Oct. 6 – the same day McCormick halted litigation between the two parties after Musk switched course and indicated he would proceed with the sale.
Musk’s lawyer, Alex Spiro, told that Twitter’s court petition was a “misdirection” and that “it is Twitter’s executives that are under federal investigation.” The Securities and Exchange Commission has questioned Musk’s remarks regarding the Twitter acquisition, including whether a 9% position he had built up before to making his offer was revealed late and whether it implied that he planned to be a passive shareholder. Musk then amended his statement to reflect that he was an active investor.
In a letter sent in June, the SEC questioned Musk if he should have modified his public filing to indicate his desire to halt or cancel the acquisition. According to The Information, a tech news site, the FTC is investigating whether Musk failed to comply with the antitrust reporting requirement pertaining to an investor’s desire to be a passive or active shareholder. However, Twitter announced in June that the buyout agreement with Musk has cleared an antitrust waiting period for consideration by the FTC and the US Justice Department. McCormick has given Musk until October 28 to complete the transaction. If the agreement is not reached by then, a trial date will be scheduled for November.
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