Elon Musk is under federal investigation for ‘his conduct’ in attempted Twitter takeover, docs show

Elon Musk is under investigation by United States federal authorities in connection with his bid to take over Twitter.

Lawyers working for the online platform claimed in a lawsuit disclosed Thursday in Delaware that Musk is currently under investigation by federal authorities for his conduct regarding his buyout of the popular social media company.

Elon Musk is currently under investigation by federal authorities for his conduct in connection with the Twitter acquisition, attorneys for Potter Anderson Corroon LLP wrote in an Oct. 6 filing.

Last week, Musk’s impeachment was delayed in a lawsuit with Twitter seeking to force him to go through with his original $44 billion buyout offer

Twitter executives are considering asking Musk to pay interest to make up for the delays. Twitter CEO Parag Agrawal is pictured here in July

Twitter’s legal team is now trying to get their hands on Musk’s communications with the FTC and SEC as the billionaire is revealed to be under federal investigation

The social media company had requested access to documents that Musk has handed over to authorities.

“He (Musk) has exchanged substantive correspondence with those authorities about their investigations through counsel,” the lawyers wrote.

“Twitter wants those documents because they address important issues in this lawsuit.”

According to an Bloomberg report, Twitter is also trying to access communications between Musk and the Federal Trade Commission.

Earlier in 2022, the US Securities and Exchange Commission sent an investigation to Musk over the first disclosure of his large stake in Twitter. The letter was sent in April and the SEC released it in May.

In early April, Musk announced that he had acquired a more than 9% stake in Twitter. He did that a week later than the regulations allow. He also used an application generally reserved for passive investors only.

Just days later, he embarked on a widely publicized but non-committal bid to buy the company for $44 billion.

Last week, Musk’s statement in the company’s lawsuit, which was to force him to go through with the $44 billion buyout, was delayed.

Both sides are moving forward in a bid to close a deal that would halt a non-jury trial in Delaware on Oct. 17.

Among the many issues they would discuss is whether Tesla’s CEO will try to make the deal contingent on its original $12.5 billion debt financing package as banks try to work their way out of the deal.

The banks could argue that Musk’s antics in delaying the deal have damaged Twitter enough, enough to qualify as a material adverse effect, causing them to walk away, the New York Times reports.

And Musk could even foil his own deal by refusing to sign a letter declaring Twitter solvent, though the judge in the case will likely force the billionaire to sue the banks for the agreed-upon money under New York law. that applies to them.

On the other hand, Twitter executives are trying to make sure Musk doesn’t come out of his agreement again, seeking reconfirmation of the details in the previously agreed-upon contract.

They are also considering options such as judicial oversight of the closing process and requesting that Musk pay interest to make up for the delays.

Musk said in July that he was withdrawing from the deal after discovering that Twitter had allegedly misled him about the number of fake accounts, among other things.

Part of Musk’s case was based on accusations made by Twitter whistleblower Peiter “Mudge” Zatko that went public in August.