'Out of Control': Twitter Files Major Legal Action Against Top Democrat for Pushing FTC Investigation
Twitter intends to subpoena Sen. Elizabeth Warren over her communications with various federal agencies, according to a new court filing.
Attorneys for X Corp, the new corporate name for Twitter, submitted their notice to the U.S. District Court for the Northern District of California, San Francisco Division, according to Fox News.
As well as subpoenaing Warren, they are also seeking all documents and communications concerning a letter allegedly sent by the senator to Securities and Exchange Commission (SEC) chair Gary Gensler on July 17, regarding Musk’s ownership of the company.
Earlier this week Warren, who sits on the Senate Banking, House, and Urban Affairs Committee, wrote a letter to Gensler urging the SEC to open an investigation into Tesla and its board of directors over their apparent “failure to oversee the conduct of CEO Elon Musk, who holds dual roles as CEO of both Twitter and Tesla.”
JUST IN: 🇺🇸 Senator Elizabeth Warren requests SEC investigation into Elon Musk’s Tesla over Twitter ties, alleging misappropriating assets and conflicts of interest. pic.twitter.com/J3Sw462gbd
— Watcher.Guru (@WatcherGuru) July 17, 2023
“The Board also does not appear to have adequately disclosed concerns about these issues to investors, undermining shareholders’ ability to make informed voting and investing decisions and to hold their fiduciaries accountable,” Warren wrote in her nine-page letter.
“The Board’s inaction and inadequate disclosures, and the close relationships of several Board members to Mr. Musk, raise questions about the effectiveness of their corporate governance and potential violations of securities laws.”
Since Elon Musk took over Twitter, I’m concerned @Tesla‘s board has failed to manage conflicts of interest from his role as CEO of Tesla & Twitter.
Tesla’s board has a legal obligation to serve its shareholders. I’m urging @SECGov to investigate.https://t.co/YWaN9GcdDg
— Elizabeth Warren (@SenWarren) July 17, 2023
“Despite hiring Ms. [Linda Yaccarino as TWitter CEO], he is likely to retain ‘significant control’ over the company and intends to continue overseeing core functions of the business.”
“Given the concerns about the actions by Mr. Musk and the Board, I ask that the SEC conduct a review to determine if they have complied with relevant securities laws,” the letter added.
Last November, Warren was among seven Democratic senators who wrote to the Federal Trade Commission (FTC) demanding it “vigorously oversee its consent decree with Twitter” as Musk set about imposing his vision across the company.
Lawyers for X Corp, meanwhile, have asked the court to “rein in an investigation that has spiraled out of control and become tainted by bias, and to terminate a misfit consent order that no longer can serve any proper equitable purpose.”
Musk completed his purchase of Twitter last October and has implemented numerous changes to the platform since then. These have included ending the aggressive censorship (primarily against conservative accounts), open sourcing the platform’s algorithm and offering blue verified checks to paid subscribers.
However, he has already stepped back as CEO of the platform, hiring former NBC executive Linda Yaccarino in his place.
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