Musk under federal investigation linked to takeover deal, says Twitter

Social media giant Twitter has said that billionaire Elon Musk was under a federal investigation in relation to his USD 44 billion takeover deal. Twitter made the state,ent in a court filing that was made public on Thursday (October 13). Twitter said that though it requested for months, Musk’s attorneys did not produce their communication with federal authorities. Twitter then asked a Delaware judge to order them to provide the documents. 

In late September, Musk’s attorneys provided a “privilege log” identifying documents to be withheld from discovery. The log referenced drafts of a May 13 email to the U.S. Securities and Exchange Commission and a slide presentation to the Federal Trade Commission, Twitter said.

“This game of ‘hide the ball’ must end,” the company said in the court filing.

Reuters said that an attorney for Musk didn’t immediately respond to a request for comment.

Twitter’s court request was filed on October 6, the same day the Delaware judge halted the litigation to allow Twitter and Musk to close the takeover deal.

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

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

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