The New York Times reported on Elon Musk’s $44 billion deal to buy Twitter and how his tweets about the deal could potentially draw scrutiny from the Securities and Exchange Commission. The publication turned to corporate partner Marc Leaf for insight on the potential implications of Musk’s Twitter posts.
“If I were his lawyer, I would be spending the morning scrambling to figure out what the implications of this all are under the federal security law,” said Leaf.
Leaf explained how there could be concern about how securities regulators may react to postings on Twitter that have direct ramifications on the deal to buy the company. He also noted that it was unclear if Musk’s postings on Twitter would require an updated filing with regulators about his plans to take the social media company private since they are considered material information to investors.