Twitter says Elon Musk is target of federal investigation: filing
A judge has given Elon Musk until Oct 28 to get the deal to acquire twitter done, if not then a trial date will be set
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Elon Musk's conduct related to his $44 billion takeover of Twitter is being investigated by federal authorities.
That's according to Twitter in a court filing released on Thursday.
However, the filing did not say what the exact focus of the probes was and which federal authorities are conducting them.
Musk agreed to buy the social media company in April, then reversed direction wanting to terminate the deal. He has since changed his mind again and has now agreed to the takeover.
MUSK-TWITTER OCT. 17 TRIAL HALTED BY JUDGE, GIVING TESLA CEO MORE TIME TO SEAL $44B DEAL
In this photo illustration, a Twitter logo seen displayed on a smartphone screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)
Twitter sued Musk in July to force him to close the deal.
Attorneys for the Tesla CEO had claimed "investigative privilege" when refusing to hand over documents it had sought.
In late September, Musk's attorneys had provided a "privilege log" identifying documents to be withheld, Twitter said.
The log referenced drafts of a May 13 email to the U.S. Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC).
"This game of 'hide the ball' must end," the company said in the court filing.
TWITTER SAYS IT PLANS TO CLOSE DEAL WITH ELON MUSK
Delaware judge Kathaleen McCormick, in the court filing, was asked to order Musk's attorneys to provide the documents.
A sign is pictured outside the Twitter headquarters in San Francisco, Monday, April 25, 2022. (AP Photo/Jed Jacobsohn / AP Newsroom)
The request was made on Oct. 6 - the same day that McCormick paused litigation between the two sides after Musk reversed course and said he would proceed with the deal.
Musk attorney Alex Spiro told Reuters that Twitter's court filing was a "misdirection" and asserted: "It is Twitter's executives that are under federal investigation."
Twitter declined to comment on Spiro's statement. It also declined comment when asked by Reuters about its understanding of any investigation into Musk.
ELON MUSK SETS CONDITION FOR TWITTER PURCHASE TO GO FORWARD
The SEC did not immediately respond to a request for comment and the FTC declined to comment.
Elon Musk’s Twitter account is displayed on the screen of an iPhone in front of the homepage of the Twitter website. (Chesnot/Getty Images / Getty Images)
The SEC has questioned Musk's comments about the Twitter acquisition, including whether a 9% stake he had built up had been disclosed late and why it indicated that he intended to be a passive shareholder.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | n.a. | n.a. | n.a. | n.a. |
| TSLA | TESLA INC. | 170.18 | +8.05 | +4.97% |
Musk later refiled the disclosure to indicate he was an active investor.
The Information, a tech news site, reported in April that the FTC was looking into whether Musk failed to comply with the antitrust reporting requirement relating to an investor's intentions of being a passive or active shareholder.
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The judge has given Musk until Oct. 28 to close the acquisition. If the deal does not get done by then, a trial date will be set for November.
Reuters contributed to this report.