Twitter Subpoenas Tech Allies of Elon Musk as Part of Lawsuit
The records and emails sought by Twitter’s subpoenas relate to the transaction, it’s funding and any details on Twitter “bot” accounts.
• Documents and correspondence related to the deal are the subjects of subpoenas.
• On July 8, Musk announced his decision to leave the agreement.
• Musk cannot be compelled to complete the transaction if the financing fails.
Today I am going to write about technology updates today: Elon Musk’s tech allies receive civil subpoenas from Twitter as part of a lawsuit.
Elon Musk’s proposed $44 billion (roughly Rs. 3,46,430 crore) takeover of the social media company is being investigated by Twitter for any evidence that he attempted to scuttle the financing, according to legal experts. Twitter is also trying to determine why he withdrew from the deal.
According to documents filed over the past two days in the Delaware Court of Chancery, Twitter served numerous civil subpoenas this week on major financial institutions like Morgan Stanley units, deal partners like a Brookfield Asset Management affiliate, and Musk advisers.
Morgan Stanley opted against commenting. A request for comment from Brookfield did not receive a prompt response. Elon Musk’s and Twitter’s representatives weren’t available.
Emails and documents pertaining to the transaction, it’s funding, and any information on “bot,” or fraudulent Twitter accounts are requested by the subpoenas:
In addition, they inquire if the receivers are aware of the potential effects that Tesla Inc. stock fluctuations might have on the transaction. Tesla Inc. is Elon Musk’s electric vehicle manufacturer.
The subpoenas are a part of Twitter’s case against Musk, which aims to compel him to honor the agreement at the $54.20 per share price (or nearly Rs. 4,270). A five-day trial is scheduled to begin in the Delaware Chancery Court on October 17.
According to experts, the subpoenas show Twitter wants to know what lenders, investors, and advisers were talking to one another about Musk’s actions after he signed the agreement in late April.
Minor Myers, a professor at the UConn School of Law, stated that “They suspect that behind the scenes he’s been conspiring to blow the whole thing up,”.
On July 8, Elon Musk made the announcement that he was leaving the partnership because, according to him, Twitter was breaking the terms of the deal by withholding information on phony accounts on the platform.
According to Twitter, the fake accounts serve as a distraction from the terms of the agreement, which are the true issue.
Additionally, Musk had stated that he was quitting Twitter due to the company’s failure to “preserve substantially intact the material components of its current business organization.” by firing high-ranking executives and one-third of the talent acquisition team.
Legal professionals say that Musk cannot be forced to complete the transaction if financing fails, given that he is not the reason for the unsuccessful finance.
The subpoenas issued by Twitter centered on Musk’s purported termination of Bob Swan, an operating partner at the venture capital firm Andreessen Horowitz who had initially spearheaded Musk’s efforts to secure the transaction financing. According to Twitter’s lawsuit, Antonio Gracias, a longtime acquaintance of Elon Musk, took his post.
Twitter appears to be asking if “Gracias had any role in getting financing done or if he was just supposed to slow things down.” according to Brian Quinn, a professor at Boston College Law School.
Andreessen Horowitz and LinkedIn messages were not immediately answered by Swan. A reply was requested from Gracias, but his Valor Equity Partners company did not react.
According to experts, Twitter is interested in learning about lenders’ worries about the prevalence of phony accounts on the site and whether or not this was a problem for them as Musk has stated.
Investors were questioned about communications about the Twitter deal with Musk’s associates, including Steve Jurvetson, a former Tesla board member, and current SpaceX director. SpaceX is a privately owned rocket company that Musk founded and currently heads.
An Inquiry for Feedback Made to Jurvetson’s Future Ventures Firm Did Not Receive an Immediate Response
Joe Lonsdale, a co-founder of Palantir Technologies Inc., tweeted: “lol, lawyers w/ TWTR are sending subpoenas to friends in the ecosystem around @elonmusk,”
I received a paper notification that read, “YOU ARE HEREBY COMMANDED, but I have nothing to do with anything other than a few snide remarks,” he stated.
Elon Musk Described the Subpoenas issued to Twitter as a Giant Harassing Fishing Expedition.
Lonsdale’s 8VC company received a mail asking for a reaction, but he was slow to respond.
Twitter is reportedly trying to find out what Musk was saying in private while publicly tweeting his concern about Twitter bots and fake accounts, claims Delaware business litigator Theodore Kittila.
According to Kittila, they are attempting to enter from behind the tweets. They are examining emails in an effort to determine what exactly transpired in the conversation and what motivated the deal’s suspension.
Musk has served his own subpoenas on the content moderator TaskUs USA and the data analytics firm Concentrix Solutions during the previous two days. The Musk subpoena questions were sent under seal.
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