Twitter Says Elon Musk Is Being Investigated By Federal Authorities Over Proposed Acquisition

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Federal authorities are investigating Elon Musk’s attempt to acquire Twitter.

According to documents submitted by Twitter’s legal department, the Tesla CEO is under scrutiny over his attempt to acquire the company. Although it is not clear what federal authorities are investigating Musk, or what documents were sought by them, the request was made after Musk purchased the company.

Bloomberg reports that Elon Musk is currently under investigation by federal authorities regarding his conduct in relation to the acquisition of Twitter. According to the legal team, the filing was made Oct. 6. Twitter’s lawyers demanded that Musk’s team submit the same documents, as they “bear upon important issues in this litigation.”

Financial regulators have been critical of Musk’s conduct in acquiring Twitter. The Securities and Exchange Commission sent a letter asking Musk about his decision to reveal his 9.2% stake in Twitter. This was after Musk had met the legal deadline.

Since June, Musk and Twitter had been at odds in Delaware Court of Chancery. In the end, Musk ended his plan to buy Twitter for $44billion. Musk claimed that Twitter was lying about the number spam bots it had on its platform. Twitter, however, claimed that Musk pulled out because his stock price dropped.

Musk wrote to Twitter on Oct. 3 requesting that he maintain his price until he has secured funding and the trial was over. To ensure that the parties could reach a final agreement, the judge who oversees Twitter’s lawsuit against Musk ruled that the suit would be stayed until Oct. 28.