Elon Musk Under Investigation by Federal Authorities, Twitter Reveals in Court Papers | Science and technology news
Elon Musk is under investigation by federal authorities over his conduct in his $44 billion (£39 billion) Twitter takeover deal, the social media company said in a court filing.
The richest man in the world recently announced he will Proceed to purchase the platform for the huge sum after months of litigation.
Twitter, which sued the Tesla boss in July to force him to complete the deal, said Mr Musk’s lawyers claimed “investigative privilege” when they refused to turn over the requested documents.
According to the social media giant, Mr Musk’s legal team had provided a “privilege log” in late September identifying documents that needed to be withheld.
The transcript related to draft emails to the US Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission.
While court filings released Thursday said the billionaire was under investigation, it didn’t explain why.
Instead, it asked a judge to order Mr Musk’s lawyers to turn over the documents.
The filing came on Oct. 6 — the same day the Delaware judge paused the litigation between the two sides after Mr Musk announced he would proceed with the deal.
Read more: Elon Musk’s Twitter deal is back on track – but will he step down a second time?
“This game of hiding the ball must end,” Twitter said in the document.
One of Mr Musk’s attorneys, Alex Spiro, said the filing was a “misdirection” by the company, adding, “It is Twitter executives that the federal government is investigating.”
Twitter declined to comment on Mr Spiro’s statement.
This isn’t the first time Mr Musk has been questioned, with the SEC having previously asked him about comments he made on the Twitter acquisition.
In April, the SEC asked Mr. Musk if the disclosure of his 9% Twitter stake was delayed and why that suggested he
intends to be a passive shareholder.
He later resubmitted to show he was an active investor.