Elon Musk Reportedly Being Investigated By Federal Regulators In Twitter Deal

Court documents revealed on Thursday indicate Elon Musk is being investigated by federal authorities in relation to his contract with Twitter to acquire all of the company’s stock for $44 billion.

A newly unsealed court filing that was submitted on October 6 contains a statement written by attorneys in the case that “Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter.”

The filing was made on the same day the judge in the case agreed to delay the trial that had been set to begin on October 17 so that Musk could move forward with completing the purchase as originally agreed.

Twitter’s attorneys told the court in the filing that they wanted access to documents that Musk’s attorneys have exchanged with the federal officials investigating the circumstances of the transaction. Twitter claimed that the documents “bear upon key issues in this litigation.”

The filings also indicate that Twitter is seeking access to communications between Musk’s representatives and the Federal Trade Commission.

Twitter reportedly had served requests to Musk’s legal team for copies of the same documents, but they were refused. The company said that refusal prompted the request for an order compelling them to be handed over.

The original contract between Musk and the Twitter board of directors in April provided for a purchase price of $54.20 each for all outstanding shares of the company. Musk later announced his intention to cancel the contract because he said the board had fraudulently concealed the true number of robot, or “spam,” accounts on the social media giant’s platform.

An April filing by the U.S. Securities and Exchange Commission (SEC) provided that Musk was prohibited from tweeting disparaging remarks about the company while the contract was pending, in order to avoid any threat of price manipulation.

Twitter then filed the pending suit in Delaware state court, and Musk eventually announced on October 4 that he would go ahead on the original terms of the contract, subject to the court’s agreement to postpone the trial and his ability to complete the necessary financing to pay the cash price agreed upon.

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