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Musk cites Twitter whistleblowers as new justifications to pull out of acquisition

On Monday, Musk’s legal team sent a letter to Twitter highlighting Zatko’s claims, which were exclusively reported by CNN and The Washington Post last week. Zatko served as Twitter’s chief security officer from November 2020 until his termination from the company in January.
Musk’s letter, which was leaked in a Securities and Exchange Commission filing, underscores Zatko’s claims that Twitter violates its 2011 consent order with the Federal Trade Commission; that the company suffers from serious security breaches; that it has violated intellectual property rights; and that he agreed to hire Indian government agents under pressure from the country.

Musk alleges that the allegations, if true, represent violations on Twitter’s side of the acquisition agreement and should allow it to opt out of the deal. The additional rationales outlined in the Aug. 29 letter are in addition to, not instead of, the rationales cited by Musk when he first announced he was seeking to step down, his legal team said in a filing. with the SEC.

CNN has reached out to Twitter for comment. In direct response to Musk, Twitter sent its own letter on Tuesday rejecting the billionaire entrepreneur’s latest attempt to cancel the deal, calling it “invalid and wrongful.”

Musk’s letter, Twitter wrote, “is based solely on statements made by a third party which, as Twitter has previously stated, are riddled with inconsistencies and inaccuracies and lack significant context.”

Legal experts say Zatko’s allegations will most likely play a role in Musk’s litigation with Twitter; the company asked a Delaware court to force Musk into the deal.

Zatko has been subpoenaed by Musk’s legal team and is scheduled to appear for deposition on September 9.

cnn

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