- Elon Musk is being investigated by US federal authorities for his management of the Twitter deal.
- Tesla’s lawyers cited “investigative privilege” in refusing to turn up documents requested by Twitter.
- The company sued Musk in July to compel him to finish a $44 billion bid to acquire the social media firm.
According to a court filing from the social media business, billionaire entrepreneur Elon Musk is being investigated by US federal authorities for his management of a $44 billion agreement to acquire Twitter Inc.
Musk was the subject of an investigation, according to a court document from Twitter Inc. that was made public on Thursday. However, the document did not specify the precise nature of the inquiry or the government agencies involved.
The CEO of Tesla Inc.’s lawyers cited “investigative privilege” in their refusal to turn up papers that the company had requested as part of their legal case, according to Twitter, which sued Musk in July to compel him to finish the $44 billion bid to acquire the social media firm.
According to Twitter, Musk’s attorneys gave a “privilege log” outlining the papers that will be withheld in late September. This log included references to a slide presentation for the Federal Trade Commission and a draught email addressed to the US Securities and Exchange Commission (SEC) on May 13. (FTC).
The court filing, which asked Delaware judge Kathaleen McCormick to order Musk’s lawyers to turn over the withheld documents, was submitted on October 6 — the same day McCormick halted the two sides’ legal battle after Musk changed his mind and declared he would move forward with the acquisition of Twitter.
Musk has until October 28 to complete the transaction, according to McCormick. November will be the trial date if the agreement is not finalized before then.
Twitter stated in the court document that “this game of ‘hide the ball’ must end.”
Twitter’s court declaration, according to Alex Spiro, a lawyer for Musk, was a “misdirection,” he said, and countered: “It is Twitter’s executives that are under federal investigation.”
When asked by Reuters about its perception of any inquiry against Musk, Twitter declined to comment on Spiro’s assertion as well as when the question was posed. An inquiry for comment was not immediately answered by the SEC, and the FTC declined to react.
The SEC has questioned Musk’s remarks on the purchase of Twitter, particularly whether or not a 9 percent stake that he had amassed prior to making his bid had been declared late and why it implied that he intended to be a passive shareholder.
Later, Musk amended the declaration to reflect his active investor status. Musk should have updated his public filing to reflect his desire to suspend or terminate the deal, the SEC questioned in a letter to Musk in June.
site for tech news According to a report in The Information from April, the FTC was looking into whether Musk had complied with antitrust reporting rules pertaining to an investor’s intentions to be a passive or active shareholder.
However, Twitter stated in June that the acquisition by Musk has passed an antitrust review waiting period by the FTC and US Justice Department.
On Wednesday, Musk said that he had raised $1 million in just a few days towards his purchase of Twitter by selling $1 million worth of a new perfume he had created called “Burnt Hair.”
On Twitter, where he has roughly 109 million followers, he added, “Please buy my perfume, so I can buy it.” He asserted that 20,000 bottles of the fragrance had been sold.
Why did I even resist it for so long? With a name like mine, getting into the scent business was unavoidable. He composed.
A ruby red bottle with the motto “The Essence of Repugnant Desire” is displayed in a link to the product’s sales page, while Musk’s Twitter bio now refers to him as a “Perfume Salesman.”
The first quarter of 2023 will see the start of shipping for each bottle, which has a $100 suggested retail price.