Twitter users still do not know what the future holds for the platform. Elon Musk is being probed by federal authorities over his conduct in his $44 billion deal to take over Twitter Inc (TWTR.N), the social media company said in a court filing published on October 13. While the filing said he was being investigated, it did not say what the specific focus of the investigations was and which federal authorities are overseeing them.
Twitter, which sued Musk in July to compel him to finalize the deal, said lawyers for the Tesla Inc (TSLA.O) CEO had claimed “investigative privilege” when refusing to submit documents it had requested.
Late last month, Musk’s lawyers had presented a “privilege log” pointing out documents to be withheld, Twitter said. The log cited a slide presentation to the Federal Trade Commission (FTC) and drafts of a May 13 email to the U.S. Securities and Exchange Commission (SEC).
“This game of ‘hide the ball’ must end,” the company said in the court filing.
The court filing, which requested Delaware judge Kathaleen McCormick to instruct Musk’s attorneys to submit the documents, was made on Oct. 6 – the same day that McCormick paused litigation between the two sides after Musk made a U-turn and said he would continue with the deal.
Alex Spiro, a lawyer for Musk, told Reuters that Twitter’s court filing was a “misdirection” and declared:
“It is Twitter’s executives that are under federal investigation.”
Twitter refused to comment on Spiro’s statement. It also refused comment when queried by Reuters about its understanding of any probes into Musk.
The FTC refused to comment and the SEC did not instantly respond to a request for comment. The SEC has questioned Musk’s remarks about the Twitter acquisition, including whether a 9% stake he had amassed before announcing his offer had been revealed late and why it stated that he planned to be a passive shareholder. Musk later resubmitted the disclosure to disclose he was an active investor.
In June, the SEC asked Musk in a letter whether he should have revised his public filing to indicate his intention to suspend or walk away from the deal.
Buy Crypto NowThe Information, a tech news site, reported in April that the FTC was investigating whether Musk failed to conform to the antitrust reporting requirement pertaining to an investor’s intentions of being an active or passive shareholder.
Twitter said in June, however, that the takeover deal with Musk had used up an antitrust waiting period for review by the FTC and U.S. Justice Department. McCormick has given Musk until Oct. 28 to finalize the acquisition. If the deal is not closed by then, a trial date will be scheduled for November.
