Elon Musk under federal investigation tied to Twitter deal

The US Securities and Exchange Commission has questioned Musk's comments about the Twitter acquisition.

SpaceX owner and Tesla CEO Elon Musk smiles at the E3 gaming convention in Los Angeles, California, US, June 13, 2019. (photo credit: REUTERS/MIKE BLAKE/FILE PHOTO)
SpaceX owner and Tesla CEO Elon Musk smiles at the E3 gaming convention in Los Angeles, California, US, June 13, 2019.
(photo credit: REUTERS/MIKE BLAKE/FILE PHOTO)

Elon Musk is under a federal investigation related to his $44 billion takeover deal for Twitter, the social media company said in a court filing made public on Thursday.

Twitter said it requested that Musk's attorneys produce their communications with federal authorities months ago but they had not done so, and asked a Delaware judge to order the attorneys to provide the documents.

In late September, Musk's attorneys provided a "privilege log" identifying documents to be withheld from discovery. The log referenced drafts of a May 13 email to the US Securities and Exchange Commission and a slide presentation to the Federal Trade Commission, Twitter said.

An attorney for Musk did not immediately respond to a request for comment.

The court request was filed on Oct. 6, the same day the court granted a stay of litigation to allow Twitter and Musk to close the takeover deal.

Tesla CEO Elon Musk leaves Manhattan federal court after a hearing on his fraud settlement with the Securities and Exchange Commission (SEC) in New York City, US, April 4, 2019. (credit: REUTERS/SHANNON STAPLETON/FILE PHOTO)Tesla CEO Elon Musk leaves Manhattan federal court after a hearing on his fraud settlement with the Securities and Exchange Commission (SEC) in New York City, US, April 4, 2019. (credit: REUTERS/SHANNON STAPLETON/FILE PHOTO)

SEC questioned Musk regarding Twitter deal

The SEC has questioned Musk's comments about the Twitter acquisition. In April, the SEC asked Musk whether the disclosure of his 9% Twitter stake was late and why it indicated that he intended to be a passive shareholder. Musk later refiled the disclosure to indicate he was an active investor.

In June, the SEC asked Musk in a letter whether he should have amended his public filing to reflect his intention to suspend or abandon the deal.