Musk also alleged that Twitter was hiding from it that the company complying with a 2011 agreement with the Federal Trade Commission regarding user data.
The world’s richest man Elon Musk continues to defend his position vigilantly for calling off the $44 billion Twitter acquisition deal.
According to the court filing submitted on Thursday, September 15, Elon Musk accused Twitter of concealing some major flaws in data security matters of the social media platform. Elon Musk also amended his previously filed lawsuit.
He also cited allegations by a Twitter whistleblower who told Congress that foreign agents have been meddling on the social media platform. Besides, Musk also alleged that Twitter was hiding from it that the company complying with a 2011 agreement with the Federal Trade Commission regarding user data. the amended countersuit by Elon Musk noted:
“Needless to say, the newest revelations make undeniably clear that the Musk Parties have the full right to walk away from the Merger Agreement – for numerous independently sufficient reasons”.
Musk also cited the claims from the whistleblower, Twitter’s former head of security Peiter “Mudge” Zatko, which amounted to fraud and breach of contract by Twitter. In his Delaware court hearing, Elon Musk said that he was not obligated to close the deal. However, Twitter has asked the court to force Musk and buy the company for the initially agreed price of $54.20. A five-day trial for the same shall begin next month on October 17.
Twitter’s Internal Investigation
The social media giant said that it conducted an internal investigation of allegations made by whistleblower Zatko and found them to be lacking merit. Twitter said that Zatko, Twitter’s previous employee was fired for his poor performance.
Twitter’s lawyers have further defended the company saying that the whistleblower claims cited by Musk were not grounds for terminating the deal agreement. In the filing earlier this week, the Twitter attorneys wrote:
“As was the case with each of your prior purported terminations, the Musk Parties third purported termination is invalid for the independent reason that Mr. Musk and the other Musk Parties continue to knowingly, intentionally, willfully, and materially breach the Agreement”.
In the latest voting, the Twitter shareholders have agreed to Musk’s $4 billion buyout. However, it will be interesting to see how this legal battle between Musk and Twitter pans out. The TWTR stock was trading 0.5% up on Thursday.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Ecosystem
Research
News Network
About