The SEC is set to evaluate Elon Musk’s tweets amid the impact of Twitter bids


ELON Musk’s tweets are under renewed scrutiny from regulators, this time over a letter in May that cast doubt on whether he would go through with his $44 billion (€43.9 billion) takeover bid for Twitter would.

The billionaire came under scrutiny by the US Securities and Exchange Commission over a May 17 tweet that said “the deal cannot go ahead,” according to correspondence released yesterday. In a letter dated June 2, the agency asked why that statement wasn’t a “material” change that should have been disclosed to investors in a formal amendment to its previous SEC filing. Musk’s lawyers responded that he did not see the need.

“However, Mr. Musk does not believe that the May 17, 2022 social media posts about spam and fake accounts on Twitter Inc.’s platform triggered a required change,” wrote Mike Ringler, attorney at Skadden, Arps, Slate, Meagher & Flom, in a letter dated June 7th.

“Despite Mr. Musk’s request for information evaluating the potential spam and fake accounts, there have been no material changes to Mr. Musk’s plans and proposals regarding the Proposed Transaction at this time.”

Mr Musk backed out of the Twitter purchase last week, spurring a lawsuit from the company to get him to finalize the deal. In the days leading up to the SEC’s tweet in question, the world’s richest person also said on the social media platform that the deal was “temporarily on hold.”

The exchange is a sign that the SEC continues to question Musk’s online statements regarding his dealings with public companies. The agency began reviewing Mr Musk’s applications for Twitter access in early April after he submitted the wrong form and missed a deadline to disclose his controlling interest in the social media company.

It’s not Mr Musk’s first encounter with Wall Street’s main watchdog. He dubbed the regulator the “Shortseller Enrichment Commission” shortly after settling securities fraud charges in 2018 related to tweets about the privatization of his electric car company, Tesla. The SEC is set to evaluate Elon Musk’s tweets amid the impact of Twitter bids

Fry Electronics Team

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