Tesla’s CEO, Elon Musk, is under investigation by US Federal Authorities, according to the social media company. The Federal Investigation Authority is investigating his takeover of Twitter for $44 billion.
However federal authorities have not even indicated what the investigation is focused on. In July, Twitter sued Tesla Chief, Elon Musk to force him to close the deal. A lawyer for Tesla Inc.’s CEO said the company could not provide Twitter with the documents. The documents were requested because of the “investigative privilege.”
Twitter reports that Tesla Chief, Elon Musk’s lawyer shared the document-withholding privilege log at the end of September. Comparatively, the FTC log contains drafts of an email to the US Securities and Exchange Commission (SEC) on May 13. A slide presentation was also presented to the Federal Trade Commission.
According to the company, this game of hiding and ball must end.
According to the court, Musk’s lawyers failed to comply with the court’s request for them to hand over the documents on October 6. As soon as Tesla Chief, Elon Musk informed McCormick he would go ahead with the deal, McCormick stopped the case between the two sides.
The lawyer for Tesla Chief, Elon Musk, Alex Spiro, told Reuters that Twitter’s lawsuit was a “misdirect” and that “the Twitter executives are under investigation.” Later, Twitter declined to comment. In response to a request for comment, neither the SEC nor the FTC responded immediately.
According to the SEC, Tesla Chief, Elon Musk was asked whether Twitter’s acquisition implied he intended to be a passive shareholder.
Musk later amended his statement to reflect that he was an active investor.
The FTC was investigating whether Tesla Chief, Elon Musk failed to comply with antitrust reporting requirements related to passive and active shareholders, according to a report from tech news site The Information.
Twitter announced in June that Tesla Chief, Elon Musk’s acquisition had passed an antitrust review waiting period by the US Justice Department and the FTC. Moreover, Tesla Chief, Elon Musk has time till October 28 by McCormick to finalize the transaction.