Twitter’s Claim Elon Musk Under Federal Investigation Is a ‘Misdirection’ Says Attorney

Tesla CEO Elon Musk looks up as he addresses guests at the Offshore Northern Seas 2022 (ONS) meeting in Stavanger, Norway, on Aug. 29, 2022. Carina Johansen/NTB/AFP via Getty Images

Elon Musk’s attorney on Saturday said Twitter’s claim in a court filing that the billionaire is under federal investigation is a “misdirection” and that it’s actually executives of the social media company being investigated.

“Twitter’s executives are under federal investigation. This misdirection was sent by Twitter to try and uncover which of their assorted misconduct they are under investigation for,” Musk’s attorney Alex Spiro said in a statement to The Epoch Times.

The Epoch Times asked Twitter for comment.

An Oct. 6 court filing unsealed on Thursday revealed that Twitter said Musk is under investigation with respect to his conduct during his bid to buy Twitter for $44 billion, according to Reuters.

The filing reportedly didn’t say by which federal authority Musk is said to be investigated, nor the scope or focus.

Alex Spiro, leader of Elon Musk attorneys team, talks to the press as he leaves the U.S. District Court, Central District of California in Los Angeles, on Dec. 6, 2019. Apu Gomes/AFP via Getty Images

Twitter Asks Judge to Release Communications

According to the filing, Twitter sought months ago to find out from Musk’s lawyers about communications they had with federal authorities, Reuters reported.

On Oct. 6, Musk’s lawyers claimed “investigative privilege” to avoid handing over documents related to the lawsuit, according to the filing.

“This game of ‘hide the ball’ must end,” Twitter’s attorneys reportedly wrote in that filing.

The social media company urged Chancellor Kathaleen McCormick, head of Delaware’s Court of Chancery, to order Musk to release the relevant documents.

The documents in question reportedly include email drafts dated May 13 to the Securities and Exchange Commission and a presentation to the Federal Trade Commission, which promotes antitrust law and consumer protection.

Twitter’s interest in these documents is unclear.

The company’s Oct. 6 filing was submitted the day the judge delayed the takeover trial between the two parties after Musk indicated that he would go ahead with the deal.

Legal Dispute

Musk and Twitter have been locked in a legal dispute for months after Musk first made his takeover offer in April then withdrew it in July and finally renewed it in October.

Twitter sued Musk in July to force him to close the deal after the world’s richest man attempted to back out amid questions about the number of spam-bot accounts on the platform.

Musk asked Twitter to disclose information about fake accounts, but unsatisfied with the outcome he sought to cancel the deal before ultimately changing his mind and renewing his bid shortly before a trial for the takeover was due to take place in mid-October.

On Oct. 6, the same day Twitter submitted its filing in which it claimed Musk was under investigation, the judge agreed to delay the takeover trial originally set for mid-October, allowing some time to close the deal.

Twitter tried to prevent this, arguing that Musk’s motion to stay the case was “an invitation to further mischief and delay.”

Elon Musk on a smartphone placed on printed Twitter logos, on April 28, 2022. Dado Ruvic/Illustration/Reuters

In a win for Musk, who argued the need for the trial was moot in light of his renewed offer, McCormick said the deal needs to be closed by Oct. 28 or the trial will happen in November.

After the judge’s ruling, Twitter indicated it wants to close the deal by Oct. 28 for $54.20 a share, which Musk first offered on April 25.

Musk said he'd close for the original price if Twitter drops its legal action, but Twitter was dubious about his motives and doesn’t seem to want to drop the legal action until the deal is closed.

The company previously accused Musk of refusing to accept his contractual obligations.