Twitter filed a request to subpoena communications between Sen. Elizabeth Warren (D-Mass.) and the U.S. Securities and Exchange Commission (SEC) and Federal Trade Commission (FTC), escalating a legal battle surrounding the social media company’s human resource practices after Elon Musk bought out the company.
Twitter’s subpoena request comes as a response to a letter Ms. Warren sent to the SEC on Monday, July 17, asking it to investigate another business entity owned by Mr. Musk, the Tesla electric car company. Ms. Warren wrote (pdf) that Mr. Musk’s control over Twitter and Tesla “raised concerns about conflicts of interest, misappropriation of corporate assets, and other negative impacts to Tesla shareholders.”
“Despite recent and repeated calls from investors to address these actions, the [Tesla Board of Directors] appears to have failed to uphold its legal duty to ensure that Mr. Musk act in the best interest of Tesla,” Ms. Warren’s letter to the SEC continues. “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.”