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Elon Musk is Being Investigated by Federal Authorities, Twitter Says in Court Filing

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Elon Musk is Being Investigated by Federal Authorities, Twitter Says in Court Filing

(CTN News) – Federal authorities are investigating Elon Musk’s takeover of Twitter Inc (TWTR.N) for $44 billion, the company said in a court filing.

The filing said he was under investigation but didn’t say what exactly the probes were about or who was conducting them.

Tesla Inc (TSLA.O) CEO’s lawyers have claimed “investigative privilege” when refusing to hand over documents sought by Twitter, which sued Elon Musk in July.

Elon Musk’s lawyers sent Twitter a “privilege log” in late September that identified documents to withhold.

The drafts were an email to the US Securities and Exchange Commission (SEC) on May 13 and a presentation to the Federal Trade Commission (FTC).

“It’s time to end this ‘hide the ball game,” the company wrote.

Elon Musk

Musk’s lawyers submitted the court filing on Oct. 6 – the same day Delaware judge Kathaleen McCormick paused litigation between the two sides after Elon Musk said he’d go ahead with the deal.

Spiro told Reuters Twitter’s court filing was a “misdirection” and that “Twitter’s executives are under investigation.”

Twitter didn’t comment on Spiro’s statement. Asked by Reuters about Musk’s investigation, it declined to comment.

The SEC didn’t immediately respond to a comment request, and the FTC didn’t either.

It’s been questioned by the SEC whether Elon Musk’s 9% stake in Twitter had been disclosed late and why it indicated he intended to be a passive shareholder. He later changed his disclosure to say he was an active investor.

The SEC asked Musk in a letter whether he should have amended his public filing to reflect his suspension or abandonment.

According to The Information, the FTC is investigating whether Elon Musk failed to comply with the antitrust reporting requirement for passive and active shareholders.

In June, Twitter said the Elon Musk takeover deal cleared an antitrust waiting period for the FTC and US Justice Department to review.

McCormick gave Elon Musk until Oct. 28 to close the deal. A November trial date will be set if the deal doesn’t get done by then.

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