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Elon Musk is under investigation by federal authorities, according to Twitter court documents. 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 claims in a court filing that Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter,” Bloomberg’s Ed Ludlow reported.
Twitter’s revelation of the federal investigation comes amidst the suspension of trial proceedings until October 28 in order for the $44 billion deal to close.
Delaware Court of Chancery Chancellor Kathaleen St. Jude McCormick has cleared the path for Elon Musk to close his buyout of Twitter by the midterm elections. The federal investigation could potentially derail this timeline.
“Defendants and Counterclaim-Plaintiffs Elon R. Musk, X Holdings I, Inc., and X Holdings II, Inc. (collectively, “’Defendants’) have agreed to close on the Agreement and Plan of Merger dated April 25, 2022, and they have moved to stay this action in light of their agreement,” the judge ruled. “Defendants have stated that ‘the closing is expected on or around October 28, 2022.’”
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