Elon Musk under federal probe over $44 billion takeover deal, says Twitter

Elon Musk under federal probe over $44 billion takeover deal, says Twitter

Last Updated Oct - 14 - 2022, 12:01 AM | Source : Reuters

Lawyers representing Twitter said the company had requested Elon Musk's attorneys for months to produce their communications with federal authorities but they f

Tesla CEO Elon Musk is being investigated in connection with his $44 billion acquisition of Twitter, the microblogging site said in a court filing on Thursday. The lawyers on behalf of the social media company wrote in a court filing in Delaware that Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter, Bloomberg reported.

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“Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter,” attorneys for Potter Anderson Corroon LLP wrote in a filing dated October 6 and unsealed Thursday.

Lawyers representing Twitter said the company had requested Musk's attorneys for months to produce their communications with federal authorities but they failed to do so, citing 'investigative privilege'. The lawyers wrote that the company has asked the court for access to documents that Musk has given to authorities.

"This game of 'hide the ball' must end," the company said in the court filing. Twitter's lawyers said the documents 'bear upon key issues in this litigation.'

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Tesla CEO agreed to buy Twitter in April but in July, Musk said he was 'terminating' the surprise deal over concerns about the number of fake and spam accounts. However, the company rejected the claim and responded with a lawsuit against the billionaire in a bid to force the deal to go through.

Both sides were scheduled to go to trial in Delaware Chancery Court on October 17 but last week Musk reversed course again. He said he would purchase Twitter at the agreed up on price of $54.20 a share.

On Thursday, Elon Musk, who launched a perfume dubbed as 'Burnt Hair', asked fans to buy his $100 perfume so that he can fund the Twitter acquisition. "Please buy my perfume, so I can buy Twitter,” Musk said in a tweet.

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Earlier this year, the US Securities and Exchange Commission sent a query to Musk how he disclosed his major stake in Twitter. The SEC had asked him whether the disclosure of his 9 per cent Twitter stake was late Musk later refiled the disclosure to indicate he was an active investor.

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