Report: Musk Under Federal Investigation Over Twitter Acquisition

Court documents unsealed Thursday revealed that billionaire Elon Musk is under investigation by federal authorities over his actions in connection with his attempted acquisition of social media giant Twitter.

Bloomberg reported that lawyers for the company wrote this detail in a court filing in Delaware. Twitter is attempting to obtain the communications between Musk and the Federal Trade Commission (FTC), even as the deal appears to be moving forward.

The company’s attorneys wrote that “he has exchanged substantive correspondence with those authorities concerning their investigations.”

Reuters reported that Twitter’s lawyers previously asked for correspondence between Musk and federal authorities, but they refused. It was then that the company on Oct. 6 filed a specific request for the details.

Musk has now reversed course on backing out of the $44 billion agreement, but the fight with Twitter continues.

The company since July has worked to obtain “all communications with any governmental authority concerning the merger.” Musk’s legal team countered that handing over contacts with the government would violate confidentiality rules surrounding attorney communications.

Musk revealed on April 9 that he had purchased an over 9% stake in Twitter. Since that point the deal has been famously on and off as the two sides bickered over issues ranging from spam accounts to security breaches.

The FTC has been investigating whether the 9% stake was disclosed properly as well as separately reviewing antitrust concerns about the acquisition.

Musk’s attorneys counter that it is actually Twitter that is under federal investigation, something the company denied.

Another document that was unsealed was an Oct. 6 letter from Twitter denying a Musk claim from days earlier that the company had a whistleblower burn his notebooks as part of his severance package. The books reportedly recounted misdeeds by the company.

Twitter denied the allegation and said that the burning of the notebooks was done by the whistleblower and concerned what he called “personal notebooks.”

The Delaware Chancery Judge set Oct. 28 as the deadline for the two sides to reach final agreement, thus canceling an Oct. 17 trial date. She indicated she will hold a trial in November if the deal cannot be worked out.