This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Elon Musk has so far largely escaped any lasting consequences for his characteristic impulsiveness. After all, who can forget the CEO of Tesla's botched efforts back in 2018 to take the EV giant private with Saudi money or his incessant flouting of constraints placed upon him by the SEC vis-à-vis his use of social media for official communication purposes? Alas, no more, as indicated by Twitter's recent filings.
Breaking @TheTerminal - $TWTR claims in a court filing that @elonmusk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter
— Ed Ludlow (@EdLudlow) October 13, 2022
Twitter has submitted a slew of documents as part of the requisite filings with the Delaware Court of Chancery, revealing that Elon Musk is currently under an investigation by the federal authorities in relation to his conduct during the Twitter takeover negotiations.
Note that the letter to Delaware Judge McCormick is dated Oct. 6; In it $TWTR is essentially asking the judge for access to correspondence/documents shared between Musk's team and government authorities. Twitter argues correspondence linked to "key issues in this litigation"
— Ed Ludlow (@EdLudlow) October 13, 2022
Specifically, Twitter submitted a letter to Judge McCormick on the 06th of October, asking for access to documents and correspondence exchanged between Elon Musk and federal authorities. The social media giant intends to use this information to bolster its own case against the CEO of Tesla.
Titanomachy of the Twitterverse
me thinks that needs to be a tee
also, y’all, we’re gonna get some unsealed redacted responsive briefs tomorrow from eons of yore
DO NOT TRIP. THEY ARE NOT NEWS. pic.twitter.com/jbnOnsZyQt
— The Chancery Daily (@chancery_daily) October 13, 2022
Nonetheless, readers should note that it is likely that this investigation has been ongoing for quite some time.
Bear in mind that Elon Musk is already being sued by Twitter investors for delaying the disclosure of his initial 5 percent-plus stake in the social media giant beyond the stipulated timeframe. To wit, as per the securities law, Musk was required to reveal his initial Twitter stake by the 24th of March as he had exceeded the 5 percent stake threshold on the 14th of March. However, the CEO of Tesla did not file the requisite paperwork with the SEC until the 04th of April, by which time he had increased his stake in Twitter to around 9 percent.
Moreover, the FTC and the SEC are also investigating Musk's strategic delay in filing the requisite paperwork, a move that likely saved him millions of dollars as investors remained unaware of his Twitter-related ambitions.
it's breaking news from last week lol
— The Chancery Daily (@chancery_daily) October 13, 2022
While the financial media is only now catching up to this last week's letter submitted by the social media giant in the Delaware Court of Chancery, it is sure to add to the perception that Elon Musk is currently stuck as he works feverishly to arrange the financing for his Twitter takeover gambit before the 28th of October. Should the CEO of Tesla fail to close this deal by that date, the court has already conveyed that it would then issue a new trial date for November.
