A new regulatory filing shows that the Securities and Exchange Commission asked Musk for more information on his recent attempt to call off his acquisition of the social network.
The disclosure sheds light on how Musk represented his commitment to the deal to the SEC, even as he looked into the accounts on the platform. The deal could bring Musk into the agency's crosshairs.
Musk's lawyer and Skadden partner Mike Ringler responded to questions from the SEC's Office of Mergers and Acquisitions.
The letter reiterates the SEC's request for clarification from Musk, including whether an earlier filing should be amended based on his statement that the deal cannot move forward until the company provides more information on its accounts.
According to the filing, the term " cannot" suggests that Mr. Musk and his affiliates are not going to complete the acquisition. The Schedule 13D has not been amended to reflect the apparent material change that has occurred to the facts reported in the previous section.
Ringler said that Musk didn't believe his message triggered an amendment to his Schedule 13D. There was no change to Mr. Musk's plans or proposal regarding the proposed transaction.
Musk wants to get out of the deal because he claims that the company did not uphold its end of the contract by failing to reveal information and conduct layoffs without his approval. Now that the market conditions have changed, Musk is trying to back out of the agreement, according to the company.
The Delaware Chancery Court is where the lawsuit was filed against Musk.
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Wall Street and social media were affected by Musk's plan.
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