Twitter claims in court filing that Musk is under federal investigation

It had already become clear that President Joe Biden’s Justice Department has been politicized and weaponized to go after his political opponents, but apparently so have other federal regulatory agencies as well.

It was asserted in court filings by Twitter’s attorneys this week that tech billionaire Elon Musk was “under investigation” by federal authorities, the Washington Examiner reported.

The filing did not make clear, however, exactly what Musk was supposedly being investigated for, though it is most likely related to his contentious bid to purchase the popular and influential social media platform for $54.20 per share, or around $44 billion.

Twitter demands document disclosures

Bloomberg News reported Thursday that a letter from Twitter’s attorneys was unsealed in a Delaware court and revealed that the company was seeking documents that would reveal the full extent of the purported federal probes into Musk.

The letter reportedly made reference to inquiries made by both the Federal Trade Commission and the Securities and Exchange Commission and demanded that Musk be compelled to hand over to Twitter “all communications with any governmental authority concerning the merger.”

This effort by Twitter to force full disclosure by Musk has been ongoing since July, the outlet noted, and has been rebuffed by Musk’s attorneys. In fact, one of those attorneys, Alex Spiro, said the letter from Twitter was a “misdirection” and flipped the script by asserting, albeit without explanation, that “It’s actually Twitter’s executives that are under federal investigation.”

FTC and SEC inquiries were opened in April

It is true, at least to an extent, that Musk has been scrutinized by the FTC and SEC over aspects of his bid to purchase Twitter, which was first announced in April.

Markets Insider reported at that time that the FTC had opened up an inquiry into whether Musk had potentially violated certain reporting requirements related to his incremental purchase of a 9.2 percent stake in Twitter and whether he would be a passive or active investor.

It was also reported that Musk had been three weeks late in filing a required disclosure once his stake had reached the 5 percent threshold.

Meanwhile, Marketwatch reported last week that the SEC had also opened an inquiry in April into whether or not Musk had “unlawfully deceived investors” with his attempt to purchase Twitter. Much like the FTC, the SEC was reportedly scrutinizing the timing of Musk’s required disclosures within a certain time frame as well as if he would be active or passive with his stake in the company.

Has the Biden admin targeted Musk for political reasons?

If, in fact, it is revealed that Musk is actually the subject of full-fledged federal investigations by regulatory agencies, that could throw a wrench into his off-and-on attempts to buy Twitter.

That said, given how the Biden administration is quite clearly using all of the power and tools at its disposal to go after the president’s critics and opponents, it is certainly possible that these federal probes are little more than government harassment of a private citizen for no legitimate or valid reason.

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