A federal judge has ordered the unsealing of a previously redacted shareholder list for the parent company of Elon Musk’s X Corp., shedding light on the entities and individuals who backed Musk’s $44 billion takeover of the social media giant formerly known as Twitter.
In an Aug. 21 order, U.S. District Judge Susan Illston granted a motion filed in July by freelance journalist Jacob Silverman, who sought to intervene in an unrelated lawsuit brought against Musk by former Twitter employees, in which X Corp. filed a redacted shareholder list.
Silverman’s motion to intervene in the case aimed to get the X Corp. investor list unsealed. In this effort, he was backed by attorneys from the nonprofit Reporters Committee for Freedom of the Press, which argued in the filing that unsealing the shareholder list was in the public’s best interest.
The motion argued that there is strong public interest in transparency, particularly regarding the ownership of a major social media platform such as X, which plays a critical role in public discourse. It contended that both the First Amendment and common law presumptions of public access require information such as X Corp.’s shareholder list to be made available in order to ensure judicial integrity and to subject the influences shaping the platform’s operations to public scrutiny.
Attorneys for X Corp. opposed the unsealing of the shareholder names that were filed as part of a corporate disclosure statement in an unrelated lawsuit. Their motion in opposition argued that the court lacks jurisdiction to consider Silverman’s request, as the case was remanded more than a year ago. In addition, X Corp. argued that the court had already found good cause to seal the statement, claiming that unsealing would violate the privacy rights of individuals and entities involved and that the disclosure statement was not relevant to the merits of the case.
The judge sided with Silverman, writing in her order that the shareholder list “does not contain any scandalous information or trade secrets” and may be revealed for “public interest in understanding the judicial process.” She also argued that X Corp. “presented little more than conjecture in support of their position” that the investor list should remain hidden. […]
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