Elon Musk’s lawyer said Twitter by letter on Monday A recent whistleblower report by former Twitter security chief Pieter Zatko may provide additional reasons for Musk to walk away from the $44 billion deal.
The letter, revealed in Tuesday’s regulatory filing, sees the billionaire try to incorporate Zacco’s allegations into the upcoming court debate over whether Musk should complete the purchase. It can be an omen.
In a related statement, Musk’s lawyers said in a court filing on Monday that they had served a subpoena against Zatko. The subpoena is one of more than 100 subpoenas issued by Musk and Twitter’s attorneys ahead of a trial scheduled for October.
Zatko has accused Twitter of years of “material misrepresentations and omissions” regarding the security and privacy protections built into its platform. Twitter executives strongly deny Zatko’s allegations.
In a letter to Twitter in July, Musk said that Twitter’s public statements about the number of fake accounts on its platform were misleading, which was the basis for agreeing to the acquisition.
Twitter is suing Musk and trying to force the deal to end. In response to Mr. Musk’s latest letter, It was also disclosed in a regulatory filing on Tuesday.a Twitter attorney argued that Musk’s grounds for terminating the deal were “invalid and unlawful.”
But Mr. Musk’s latest letter The billionaire has suggested he may seek permission from the Delaware Court of Chancery, which oversees legal disputes, to amend his counterclaims against Twitter. You can also request information and request more time to discover.
It will be up to the judge overseeing the trial, Kathleen St. J. McCormick, to allow him to do so. is not clear.
In the letter, Musk’s lawyers wrote that if Zatko’s allegations are true, they would constitute a “significant adverse effect” on the company, allowing Musk to break the contract. The deal requires Twitter to comply with federal law, and Zatko accuses it of violating a 2011 consent order with the Federal Trade Commission on security practices, according to the letter. , which would have “existential” consequences for Twitter’s business.
The letter also says Twitter should have disclosed the security weaknesses Zacco identified in filings with the U.S. Securities and Exchange Commission. Failure to do so constitutes fraud, the letter said.
multiple lawmakers Asked the FTC to investigate Zatko’s allegations.He Scheduled to testify before the U.S. Senate Judiciary Committee in September.
If Judge McCormick does not allow Musk to amend his counterclaim, another unconventional option remains. He could file a federal lawsuit, arguing that he has the right to waive the deal under law. manage the sale of securitiesAnd he can ask that judge to put the deal on hold until the case is resolved. It risks angering a Delaware court that has already overseen the battle between Twitter and Twitter.