Federal authorities are looking into Elon Musk’s $44 billion purchase of Twitter. The information was revealed in a court document that detailed the most recent continuing legal conflicts between the billionaire and the microblogging platform.
Although court filings said that he was under investigation, they did not specify the subject of the inquiry or the federal agencies involved.
Elon Musk has spoken with federal authorities about their inquiries in-depth via legal advice. Now because they are relevant to crucial issues in the ongoing legal process, Twitter wants those papers. The social network business said in the court papers that it initially asked for the information in July.
Elon Musk finally decided to purchase Twitter for the previously agreed-upon $44 billion after much legal cajoling. The 51-year-old has expressed dissatisfaction with the percentage of accounts that are made up of bots despite having agreed to that level in April, pending funding.
Additionally, he put the transaction on hold before declaring two hours later that he was “still committed” to making the purchase.
In addition, he claimed Twitter failed to give him the essential information on spam, was prosecuted by the social media company after attempting to end the transaction in July and was the target of a class action lawsuit from shareholders.
On an accelerated schedule, the last case was scheduled to begin in Delaware Chancery Court later this month. The trial was postponed by the court, allowing Elon Musk until October 28 at 5:00 p.m. to complete the transaction.
The court will schedule a new trial date if Elon Musk does not complete the contract by the predetermined deadline.
In the meanwhile, the SEC enquired about a tweet the billionaire posted in which he claimed that false accounts on Twitter prevented his purchase of the service from proceeding.
It implied he would back out of the arrangement, which is exactly what he did. The timing of when the Tesla CEO initially disclosed his significant stockpile of Twitter shares raised concerns with the SEC.
In its most recent petition, Twitter begs the court for assistance in getting the government to provide Elon Musk’s legal correspondence with it about the business and the deal.
According to Deadline, it said, “This game of concealing the ball must cease.” Alex Spiro, meanwhile, said that the petition by the social media behemoth is a ploy to divert attention from the platform’s own legal issues related to security flaws.
In order to purchase the social networking platform outside of the courts, Elon Musk has begun selling a perfume called Burnt Hair, which may or may not be a genuine thing.
The Tesla CEO posted a picture of the item on social media earlier this week. He also said that the scent’s sales had surpassed $1 million and updated his Twitter bio to read “Perfume Salesman.”
Source: CNN, GiantfreakinRobot