U.S. SEC Asks Elon Musk to Clarify Comments on Twitter Acquisition
Table of contents
Elon Musk Under SEC Scrutiny Over Twitter Deal
The U.S. Securities and Exchange Commission (SEC) asked Elon Musk why he did not amend a filing related to the deal in a letter sent last month. The agency was referring to his May 17 tweet in which he said the "deal cannot move forward" until Twitter provided more data about how the company handled fake accounts.
The SEC clarified in its letter that it had inquired about the May 17 tweet with Musk's legal counsel the following day but had not received a response more than two weeks later. The SEC added if Musk did not respond, it might decide to release all correspondence, including the letter.
Based on the letter dated June 2, SEC interpreted Musk's tweet as meaning he would "suspend completion of the acquisition." The agency questioned Musk in an April letter about his apparent delay in disclosing his large ownership stake in Twitter.
The letter is evidence that the SEC has been closely monitoring Musk's Twitter takeover. Reportedly, securities lawyers expect the regulatory agency to scrutinize Musk's public statements to determine if he misled the market.