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Musk cites whistleblower as new reason to exit Twitter deal

Twitter trying to force to Tesla boss to go through with the $44 billion deal
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FILE - Tesla CEO Elon Musk speaks before unveiling the Model Y at Tesla91裸聊视频檚 design studio in Hawthorne, Calif., March 14, 2019. Musk91裸聊视频檚 legal team is demanding to hear from a whistleblowing former Twitter executive who could help bolster Musk91裸聊视频檚 case for backing out of a $44 billion deal to buy the social media company. Twitter91裸聊视频檚 former security chief Peiter Zatko received a subpoena on Saturday, Aug. 27, 2022, from Musk91裸聊视频檚 team, according to Zatko91裸聊视频檚 lawyer and court records. (AP Photo/Jae C. Hong, File)

Tesla CEO Elon Musk and Twitter lobbed more accusations at each other Tuesday in the latest round of legal filings over Musk91裸聊视频檚 efforts to rescind his offer to buy the social media platform.

Musk filed more paperwork in his bid to terminate the deal, this time based on information in a whistleblower complaint filed by Twitter91裸聊视频檚 former head of security.

Twitter fired back by saying Musk91裸聊视频檚 attempt to back out is 91裸聊视频渋nvalid and wrongful.91裸聊视频

In a filing with the Securities and Exchange Commission, Musk said his legal team notified Twitter of 91裸聊视频渁dditional bases91裸聊视频 for ending the deal on top of the ones given in the issued in July.

Twitter has sued Musk, asking the Delaware Chancery Court to force him to go through with the $44 billion deal. A high-stakes trial is set to start the week of Oct. 17.

In a letter to Twitter Inc., which was included in the filing, Musk91裸聊视频檚 advisors cited the whistleblower report by former executive Peiter Zatko 91裸聊视频 also known by his hacker handle 91裸聊视频淢udge.91裸聊视频

Zatko, who served as Twitter91裸聊视频檚 head of security until he was fired early this year, to U.S. officials that the company misled regulators about its poor cybersecurity defenses and its negligence in attempting to root out fake accounts that spread disinformation.

The Musk letter, addressed to Twitter91裸聊视频檚 Chief Legal Officer Vijaya Gadde, said Zatko91裸聊视频檚 allegations provide extra reasons to end the deal if the July termination notice 91裸聊视频渋s determined to be invalid for any reason.91裸聊视频

Billionaire Musk has spent months alleging that the company he agreed to acquire undercounted its fake and spam accounts, which means he doesn91裸聊视频檛 have to go through with the deal.

In a separate SEC filing, Twitter responded to what it called Musk91裸聊视频檚 latest 91裸聊视频減urported termination,91裸聊视频 saying it91裸聊视频檚 91裸聊视频渂ased solely on statements made by a third party that, as Twitter has previously stated, are riddled with inconsistencies and inaccuracies and lack important context.91裸聊视频

Zatko received a subpoena Saturday from Musk91裸聊视频檚 team compelling him to testify in what Zatko91裸聊视频檚 lawyers emphasized would be an 91裸聊视频渋nvoluntary91裸聊视频 deposition ahead of the coming courtroom battle between Twitter and Musk.

91裸聊视频淗e did not make his whistleblower disclosures to the appropriate governmental bodies to benefit Musk or to harm Twitter, but rather to protect the American public and Twitter shareholders,91裸聊视频 Zatko91裸聊视频檚 lawyers wrote in a prepared statement.

Twitter is likely to amend its lawsuit to include Zatko91裸聊视频檚 allegations, so the court can decide on both the bot and cybersecurity issues. That could delay the trial because Musk will say he needs more time to prepare, said Brian Quinn, a law professor at Boston College.

The court will have to decide whether the bot or cybersecurity issues are a 91裸聊视频渕aterial adverse effect91裸聊视频 that will harm Twitter91裸聊视频檚 business for years 91裸聊视频 a difficult legal bar to clear, Quinn said.

The bot issue, which Twitter disclosed in filings with the SEC, seems to be an issue that Twitter would win on, Quinn said. Cybersecurity problems raised by Zatko may not be such an easy victory, he said.

91裸聊视频淭his is more grist for the mill,91裸聊视频 Quinn said. 91裸聊视频淚t91裸聊视频檚 not as obvious for the most part that this is a winner for Twitter. But once you start to analyze these closely, it91裸聊视频檚 still an uphill battle for Musk.91裸聊视频

91裸聊视频擪elvin Chan And Tom Krisher, The Associated Press





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