WASHINGTON (Parliament Politics Magazine ) – By demanding additional information regarding Elon Musk’s filings made during the process, the US financial watchdog has increased the pressure on him in relation to his effort to acquire Twitter.
In a letter written last month, the Securities and Exchange Commission (SEC) questioned Musk about why he had not amended a filing pertaining to the transaction, according to correspondence made public on Thursday by attorneys for the Tesla CEO. The information provided by Musk’s attorneys also discloses that the SEC has requested the businessman to properly file any material intended to influence shareholders after pointing out a problem with one such filing.
When Musk tweeted on May 17 that the deal cannot proceed forward, the SEC reportedly inquired in a letter dated 2 June as to why Musk did not amend a pertinent document, known as a schedule 13D. Musk, who owns 9.2% of Twitter, is required to revise the 13D if his intentions for the shares alter, in this case from trying to acquire the business to maybe not doing so.
The SEC then demands a formal justification for why the 13D was not amended, as well as a “clear statement” regarding Musk’s intentions to acquire Twitter.
The 13D has already been amended numerous times and continues to reflect Mr. Musk’s current plans and proposals with regard to the prospective acquisition, according to a letter from Musk’s attorneys to the SEC dated June 7.
The letter was written before Musk declared last week that he wanted to cancel the acquisition agreement, a decision that Twitter is now challenging in court.
Professor of law at Columbia University, John Coffee asserted that Musk ought to have amended the 13D. That was obviously a major development, and people who file 13Ds were obligated to update them, he added.
Musk has been contacted by the SEC about Twitter. He was contacted by them in April about the declaration of his ownership in the platform and the possible reasons he filed a vital form related to it so late.
Musk has previously engaged in conflict with the SEC. In 2018, Musk and the organisation came to an agreement over a tweet in which Musk claimed to have financing secured for a plan to take his company Tesla off the stock market.
