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Twitter-Musk: Judge denies former PayPal executive's motion to opt of subpoena request

Legal correspondent Alexis Keenan details how the judge in the Twitter-Elon Musk lawsuit denied former PayPal executive David Sacks' motion of subpoena requests.

Video Transcript


SEANA SMITH: A friend of Elon Musk losing his bid to quash a subpoena in the battle over Musk's attempt to back out of the $44 billion Twitter deal. Alexis Keenan is here with the details on that. Alexis.

ALEXIS KEENAN: Hey, Seana. Yes, this is the Delaware Judge and Chancery Court. She denied this request from a friend of Elon Musk and former PayPal COO David Sacks. And also, this request was not only put to Sacks but also to his venture fund, Kraft Ventures. So he was looking to not have to answer the requests in this subpoena. And there are two, one is in Delaware and one is in California.

But the one that we're talking about today is in Delaware. Sacks complained that some of the information was duplicative of that which was asked for in California, which he agreed to provide. And basically, what Twitter is looking for here in its subpoena to him is for information concerning his communications with Musk, perhaps. Also, though, he's criticizing this request, saying that they're also asking for his public tweets.

The reason, though, that Twitter is going after him is because Sacks is one of four people that Musk did identify as talking with, communicating with regarding the Twitter-Musk merger. So Sacks has also criticized-- been a big vocal critic of Twitter's management.

And he's also the cohost of a podcast that's called "All In." There he has voiced his objections to this subpoena. And he's also done so on Bloomberg TV, as well as in some tweets. He calls a request a fishing expedition and a harassment by Twitter's lawyers.

So let's take a look at what Sacks has said in both his August 4 podcast and also in an interview with Bloomberg on August 10.

DAVID SACKS: The question is, do I have relevant information that pertains to this contractual lawsuit? I don't think I do. I wasn't part of the transaction. I just wasn't. And I've never-- I've never-- and I've never said anything in regards to the transaction that should lead anyone to believe that I'm in possession of nonpublic information.

ALEXIS KEENAN: So he said something similar to Bloomberg. And he's basically saying, look, he doesn't have information about this transaction or about the lawsuit. Now, while that might be true, the judge said in her decision that Sacks' VC firm had entered into a nondisclosure agreement with Elon Musk to evaluate a potential investment in connection with Musk's acquisition of the company.

So a lot to be learned there. And whether or not he's parsing words here, we don't know at this point. But he's going to have to turn over this information.

SEANA SMITH: It's a side story here, but certainly entertaining as we've watched the developments of this case.


SEANA SMITH: All right, Alexis Keenan, thanks so much. Have a great weekend.