According to the social media company, Elon Musk, CEO of Tesla, is under investigation by US Federal Authorities. The Federal Investigation Authorities are looking into his action of $44 billion for the takeover of Twitter.
However, the clear focus of the investigation is not even evident by the federal authorities. Twitter sued Musk in July to force him to close the deal. Lawyers for the CEO of Tesla Inc. said they couldn’t give Twitter the documents. They were asked for because of “investigative privilege.”
According to Twitter, at the end of September, Elon Musk’s lawyer shared the “Privilege log,” identifying documents to be withheld. In comparison, the FTC log holds the drafts of an email to the US Securities and Exchange Commission (SEC) on May 13. Including a slide presentation to the Federal Trade Commission.
The company stated in the court filing that, This game of hiding and ball must end.
On October 6, the court asked Delaware judge Kathaleen McCormick to order Musk’s lawyers to hand over the documents. On the same day, McCormick stopped the case between the two sides after Musk changed his mind and said he would go through with the deal.
Alex Spiro, Musk’s lawyer, told Reuters that Twitter’s court filing was a “misdirect” and said, “the Twitter executives are under investigation.” Later, Twitter declined to comment on Spiro’s statement. The SEC didn’t respond immediately to a request for comment, and the FTC declined to comment.
The SEC asked Musk about Twitter’s acquisition and whether it implied that he intended to be a passive shareholder.
Musk later amended his statement to reflect that he was an active investor.
The FTC was investigating whether Musk failed to meet the antitrust reporting requirement relating to an investor’s intentions to be a passive or active shareholder, according to a report from the tech news site The Information in April.
However, in June, Twitter said that the acquisition by Musk had passed an antitrust review waiting period by the FTC and US Justice Department. Moreover, Musk has time till October 28 by McCormick to finalize the transaction.