WILMINGTON, Delaware, Oct 13 (Reuters) – Elon Musk is under investigation by federal authorities, the social media company said in a court filing released on Thursday. , because of his actions in the $44 billion acquisition of Twitter Inc (TWTR.N).
While the documents say he is under investigation, it does not say what the exact focus of the investigation is and which federal authorities are conducting the investigation.
Twitter, which sued Musk in July to force him to close the deal, said lawyers for the Tesla Inc (TSLA.O) chief executive claimed “investigative privilege” when refusing to hand over documents it sought.
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In late September, Musk’s lawyers provided a “privilege log” indicating documents to be withheld, Twitter said. The log cites a May 13 draft email sent to the Securities and Exchange Commission (SEC) and slides submitted to the Federal Trade Commission (FTC).
“This ‘dodgeball’ game must end,” the company said in court documents.
Court documents asking Delaware Judge Kathryn McCormick to order Musk’s lawyers to provide documents, which were filed Oct. 1. On June 6, McCormick suspended the lawsuit between the parties after Musk reversed course and said he would go ahead with the deal.
Musk’s attorney, Alex Spiro, told Reuters that Twitter’s court filing was “misleading,” claiming: “It is Twitter executives who are under federal investigation.”
Twitter declined to comment on Spiro’s statement. It also declined to comment when asked by Reuters for its understanding of any investigation into Musk.
The Securities and Exchange Commission did not immediately respond to a request for comment, and the Federal Trade Commission declined to comment.
The SEC questioned Musk’s comments about the Twitter takeover, including whether the 9% stake he accumulated before announcing his bid was delayed in disclosure, and why it indicated his intention to become a passive shareholder. Musk later resurfaced the disclosure, indicating that he is an active investor.
In June, the Securities and Exchange Commission asked Musk in a letter whether he should amend his public filings to reflect his intention to suspend or walk away from trading.
Tech news site The Information reported in April that the FTC was examining whether Musk failed to comply with antitrust reporting requirements related to investors’ intent to become passive or active shareholders.
However, Twitter said in June that the Musk acquisition deal had cleared the antitrust waiting period reviewed by the FTC and the U.S. Department of Justice.read more
McCormick has given Musk until October. The acquisition ended on the 28th. If the deal doesn’t close by then, the trial date will be set for November.
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Reporting by Tom Hals in Wilmington, Delaware, Sheila Dang in Dallas and Hyunjoo Jin in San Francisco; Editing by Peter Henderson and Edwina Gibbs
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