Elon Musk is under federal investigation, Twitter says in court filing

The filing did not say what the exact focus of the probes were and which federal authorities are conducting them

Updated - October 14, 2022 02:33 pm IST

Published - October 14, 2022 08:08 am IST - WILMINGTON, Del.

 Elon Musk. File.

Elon Musk. File. | Photo Credit: Reuters

Elon Musk is being investigated by federal authorities over his conduct in his $44 billion takeover deal for Twitter Inc., the social media company said in a court filing released on Thursday.

While the filing said he was under investigations, it did not say what the exact focus of the probes were and which federal authorities are conducting them.

Twitter, which sued Mr. Musk in July to force him to close the deal, said attorneys for the Tesla Inc CEO had claimed "investigative privilege" when refusing to hand over documents it had sought.

In late September, Mr. 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).

The court filing, which asked a Delaware judge to order Mr. Musk's attorneys to provide the documents, was made on October 6—the same day that the judge that paused litigation between the two sides after Mr. Musk reversed course and said he would proceed with the deal.

"This game of 'hide the ball' must end," the company said in the court filing.

Alex Spiro, an attorney for Mr. Musk, told Reuters that Twitter's court filing was a "misdirection." Twitter declined to comment on Mr. Spiro's response and to Reuters queries about its understanding of any investigation into Mr. Musk.

The SEC did not immediately respond to request for comment and the FTC declined to comment.

The SEC has questioned Mr. Musk's comments about the Twitter acquisition. In April, the SEC asked Mr. Musk whether the disclosure of his 9% Twitter stake was late and why it indicated that he intended to be a passive shareholder. Mr. Musk later refiled the disclosure to indicate he was an active investor.

In June, the SEC asked Mr. Musk in a letter whether he should have amended his public filing to reflect his intention to suspend or abandon the deal.

The Information, a tech news site, reported in April that the FTC was scrutinizing whether Musk failed to comply with an antitrust reporting requirement as he amassed his stake in Twitter.

Twitter said in June that the takeover deal with Musk had cleared an antitrust waiting period for review by the FTC and U.S. Justice Department.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.