CEO of Tesla Elon Musk is currently under a federal investigation by the US Federal authority for his conduct over the $44 billion Twitter takeover deal
The court filing, released on Thursday, specified that the billionaire and Tesla chief is facing an investigation over the deal, which he had derailed in July this year, but is now back on track.
Although the recent investigation did not disclose what Musk is being investigated for by the US federal authorities.
Recall that the micro-blogging platform had Sued Elon Musk in July this year, after negotiating the sale of the social media website to him, and forced him to close the $44 billion acquisition deal.
Two months later, in September, Twitter disclosed that Musk through his attorneys, shared a “privilege log” identifying documents to be withheld.
In the log, they referenced drafts of an email from 13 May to the US Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC).
“This game of ‘hide the ball’ must end,” Twitter said, according to the court filing. The court filing, made on 6 October, asked Delaware judge Kathaleen McCormick to order Musk to share the documents.
On the same day, the judge paused the litigation between Twitter and the Tesla owner shortly after Musk made a decision that he would resume the Twitter deal.
According to Elon Musk attorney Alex Spiro, he has labeled Twitter’s recent court filing as a “misdirection” and asserted that it was Twitter’s executives that are under federal investigation. However, following Alex Spiro’s statement, the social media company is yet to respond to his claims.
Investors King understands that earlier this month, the Tesla CEO has made a U-turn to purchase the microblogging platform, following his initial refusal to close the $44 billion Twitter acquisition deal, months after he made the decision to walk away.
According to a letter filled by America’s Securities and Exchange Commission (SEC), Musk disclosed that he would proceed with the transaction on the original terms, pending receipt of the debt financing for the deal provided that the Delaware Chancery Court entered an immediate stay of the action.
Twitter however confirmed that it received Musk’s letter intending to close the transaction at the original share price at $54.20 per share.