Elon Musk under federal investigation over Twitter deal

According to Twitter attorneys, Elon Musk is “currently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter. »

In addition, the social network’s lawyers pushed the billionaire to postpone his communications with the feds. This is the latest twist in the legal saga between the richest man on the planet and Twitter.

The firm’s lawyers Potter Anderson Corroon LLP made the statements in a legal document filed Oct. 6 with a Delaware court and made public Thursday, Oct. 13.

Twitter’s lawyers also accused Elon Musk of not having handed over the documents relating to the federal investigation in anticipation of a lawsuit between the billionaire and the social network concerning the attempts of the boss of Tesla to withdraw from the acquisition agreement.

The document does not specify which branch of the federal government is leading the investigation or what investigators are focusing on or whether it is a civil or criminal investigation. However, the Securities and Exchange Commission (SEC, the US federal financial markets regulator and supervisor) admitted in May that it was investigating whether Elon Musk had properly disclosed the 9% stake in Twitter he acquired, information that became public early april.

“This game of hide and seek must come to an end,” Twitter’s attorneys said in the document filed with the court. Delaware Court of Chancery. “Twitter therefore seeks the Court’s assistance in obtaining production of the defendants’ attorneys’ communications with the government regarding Twitter and the Takeover Agreement.” »

Last July, Elon Musk said he was “ending” the surprise takeover deal for Twitter due to concerns about the number of fake accounts and bots populating the social network, but Twitter has dismissed those claims and quickly responded by filing a lawsuit against the billionaire. A trial was due to start next Monday, but Elon Musk unexpectedly did an about-face last week, filing a document saying the deal stood at the original price of $44 billion. A judge has set a new deadline of October 28 for Elon Musk to complete the deal or the trial will continue.

A Twitter investor filed a lawsuit against Elon Musk on Monday (October 10th), claiming that his inconsistent approach to the deal and his numerous public statements disparaging Twitter were attempts to lower the takeover price.

Elon Musk’s net worth is estimated at $219 billionmaking him the richest person on the planet.

Article translated from Forbes US – Author: Nicholas Reimann

<<< Read also: Twitter: Elon Musk renews his takeover offer at the initial agreed price, the shares of the social network soar >>>

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