According to a court filing by Twitter Inc, Chief Executive Officer of Tesla Motors, Elon Musk is under investigation by federal authorities in connection to his actions during the acquisition deal of the social media company.
Elon Musk had a few months ago offered 44 billion dollars to acquire a majority stake in Twitter Inc and then to convert the social networking company into a privately owned company. The acquisition deal which witnessed many ups and downs later saw Tesla CEO backing out stating technical reasons. As a counter action Twitter Inc filed lawsuits against Musk requesting court to force him to complete the acquisition deal.
The latest filings by Twitter in court regarding the federal investigation against Elon Musk would have a severe impact on his case in court. Twitter has reportedly not provided any detailed information regarding what is exactly being investigated by the federal agencies of the government of United States of America.
Twitter, which sued Musk in July to force him to close the deal, said attorneys for the Tesla Inc CEO had claimed “investigative privilege” when refusing to hand over documents it had sought.
In late September, Musk’s attorneys had provided a “privilege log” identifying documents to be withheld, Twitter said. The log referenced drafts of a May 13 email to the U.S. Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC).
Delaware judge Kathaleen McCormick who is overlooking the case since the beginning in July 2022 had on October 8th paused the litigation process between both parties as Musk hinted at going back to the original deal and completing the acquisition. Latest reports suggest that judge Kathaleen McCormick has given Elon Musk time till October 28th to close the acquisition. If the Tesla CEO is showing no signs of completing the acquisition deal, the judge is going to post-trial date for November 2022.
There are also media reports that the securities and exchange commission and the Federal Trade Commission of the United States have already questioned Elon Musk regarding acquisition of a 9 percentage stake in Twitter Inc and also regarding the late filing of the information on the Acquistion.
Lawyers representing Elon Musk stated that Twitter was misrepresenting the facts of the case and that it was actually officials of Twitter Inc who were being investigated by the federal authorities. Twitter Inc has not so far made any comments regarding the acquisition of Musks lawyers. Securities Exchange Commission and Federal Trade Commission also have not made any statements so far regarding the new developments.
