According to court documents filed by Spacex, Elon Musk, Tesla CEO and Spacex Chairman is being investigated for conduct related to the acquisition of Twitter worth $44 billion. Twitter claims that “Through counsel, he has exchanged substantive correspondence with those authorities concerning their investigations.”
Federal Authorities are Investigating Elon Musk’s Case, Says Twitter
Twitter has revealed that Tesla CEO Elon Musk was under investigation by federal authorities in connection to the $44 Billion bid to purchase the social media company.
In a letter dated Oct. 6, addressed to Judge Kathaleen St. Jude McCormick who oversees the company’s case against Musk, Twitter’s lawyers noted that they have been asking for the documents related to the investigation from Musk since July 22. According to the lawyers:
Federal authorities are investigating Elon Musk for conduct related to the purchase of Twitter. Counsel has provided him with substantive correspondence concerning the investigations of federal authorities.
While emphasizing that those documents “bear upon key issues in this litigation,” the lawyers stressed: “Twitter requested the production of those documents months ago. However, the trial is only eleven days away. [the] defendants have still not produced them.”
In their letter, Twitter’s lawyers also referred to a letter the Securities and Exchange Commission (SEC) allegedly sent Musk in June. According to Twitter, the SEC was seeking information related to a tweet Musk posted in May, indicating that the “deal cannot move forward” until the social media company provides him with more information about spam and fraud accounts on the platform.
The SEC also probed Twitter over the company’s method of identifying spam accounts. In a letter dated July 27, the SEC told Twitter: “We have completed our review of your filings. We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.”
Musk initially agreed to purchase Twitter for $44 billion in April. He tried to cancel the deal after that, accusing Twitter for a material violation of the agreement. According to Musk, Twitter was not transparent with him about fake accounts and bots on their platform. Musk gave multiple reasons for ending the deal.
Twitter sued Tesla CEO Musk to stop him from closing the deal. Musk countersued Twitter. Both sides were to appear in Delaware Chancery Court for trial on October 17.
Musk stated last week that Twitter would be purchased at the $54.20 per-share price. To avoid trial, the court granted Musk until October 28th to complete the purchase. Musk said that the purchase of Twitter will accelerate the creation of “X, the everything app.”
Are you concerned about Elon Musk’s possible federal investigation? Leave your comments below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.