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US Authorities Investigating Musk, Twitter Tells Court

$44-billion takeover bid hits rocky water. But a lawyer for Musk said Twitter’s court filing was a “misdirection” and that: “It is Twitter’s executives that are under federal investigation.”


Researchers in Britain say propaganda by authoritarian regimes in Russia, China and Iran have attracted more followers since Twitter dropped its labels on 'state-controlled media'
Elon Musk tweeted previously that "All news sources are partially propaganda". And now, researchers say Twitter accounts of authoritarian regimes continue to spew out disinformation, despite this being an election year in the US. File photo: Reuters.

 

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

The court notice did not reveal the focus of the probes or which federal authorities were conducting them.

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

In late September, 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 US Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC).

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

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

Alex Spiro, an attorney for Musk, said that Twitter’s court filing was a “misdirection” and asserted: “It is Twitter’s executives that are under federal investigation.”

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Musk U-Turn: Ready to Buy Twitter if it Drops Legal Case

 

 

 

SEC Questions Musk over Stake

Twitter declined to comment on Spiro’s statement. It also declined comment when asked about its understanding of any investigation into Musk.

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

The SEC has questioned Musk’s comments about the Twitter acquisition, including whether a 9% stake he had built up before announcing his bid had been disclosed 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.

The Information, a tech news site, reported in April that the FTC was scrutinizing whether Musk failed to comply with the antitrust reporting requirement relating to an investor’s intentions of being a passive or active shareholder.

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

McCormick has given Musk until October 28 to close the acquisition. If the deal does not get done by then, a trial date will be set for November.

 

  • Reuters with additional editing by Jim Pollard

 

 

ALSO SEE:

 

Twitter Wins Bid to Fast-Track Case Against Elon Musk

 

Elon Musk Twitter Feed ‘Attracts 23% Spam, Fake Account Rate’

 

India Warns Rules Still Apply to an Elon Musk-Owned Twitter

 

AF TV – What’s next for Twitter after Elon Musk’s Takeover?

 

China’s Military Fears Elon Musk’s Starlink – PLA Daily

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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