Dogecoin lover Elon Musk faced questions from the Security and Exchange Commission (SEC) about his tweet on quitting the Twitter acquisition
SEC Requests for More Information
The United States Securities and Exchange Commission (SEC) has requested more information from Elon Musk over a tweet he made on May 17th regarding his $44 billion commitment to buy Twitter, which he then tried to back out of.
Musk has already been under investigation by the government body. The SEC provided information regarding the agreement promise made by the CEO of Tesla in a letter dated June 7th and published by the regulator on its website.
Mike Ringler, a partner at the Skadden law firm and Musk’s legal counsel, responded to inquiries from the SEC’s Office of Mergers and Acquisitions on the Tesla CEO’s tweet regarding the contentious acquisition.
The SEC questioned Musk about his comments that the acquisition of the social network “cannot move forward” until the business discloses more details on the spam accounts he wanted on his Twitter account.
"The term “cannot” suggests that Mr. Musk and his affiliates are exercising a legal right under the terms of the merger agreement to suspend completion of the acquisition of Twitter or otherwise do not intend to complete the acquisition," they asked. SEC officials.
“Yet, we note that the Schedule 13D has not been amended to reflect the apparent material change that has occurred to the facts previously reported under Item 4 of Schedule 13D,” the filing adds.
Ringler Response
Ringler responded to the inquiry by stating that his client did not believe the tweet “triggered any mandatory update to his previously filed Schedule 13D.”
"Despite Mr. Musk’s desire to obtain information to evaluate the potential spam and fake accounts, there was no material change to Mr. Musk’s plans and proposals regarding the proposed transaction at such time," he added.
Since then, Musk has repeatedly attempted to unravel the agreement. The multibillionaire claimed that Twitter had broken the terms of the agreement in several tweets on the microblogging site. Musk claims that the business withheld information that was requested and fired employees without his consent.
Twitter Claims About Musk Pull Out
Twitter has refuted these accusations and asserted that Musk is merely attempting to back out of the agreement due to changes in the market.
On Tuesday, July 12th, the business filed a lawsuit in Delaware Chancery Court against Musk in an effort to compel him to carry out the $44 billion buyout agreement.
The attempt by Musk to back out of the transaction was labeled “invalid and unjust” by Twitter’s attorneys in a subsequent letter written to the Securities and Market Commission (SEC) and to Musk.
"Mr. Musk's alleged termination of his contract is invalid and wrongful, and constitutes a repudiation of his obligations under the agreement," wrote William Savitt, a partner at law firm Wachtell, Lipton, Rosen & Katz, which represents Twitter.
"Contrary to the assertions in his letter [which Musk sent to the company on friday], Twitter has breached none of its obligations under the Agreement," Savitt added.
The legal counsel for the company claims that Musk is obligated by the terms of the contract because he and his attorneys “knowingly, purposefully, willingly, and grossly broke the Agreement.”
