Elon Musk attempts to cancel the Twitter agreement with yet another notification.
With his third letter to Twitter, Elon Musk is attempting to back out of his $44 billion purchase of the firm. The multimillion dollar severance payout made by Twitter to former security chief and whistleblower Peiter Zatko was highlighted by Musk's legal team as a breach of the merger agreement and a justification for terminating the acquisition. Twitter's chief legal officer Vijaya Gadde received the letter, which was dated September 9th, and it was attached to a filing the company made with the SEC on Friday (which you can read at the bottom of this article).
Last month, Zatko gained notoriety by claiming that Twitter had engaged in bad security procedures, failed to destroy user data, and misled investors about the number of bots using the service. Musk reacted quickly to the claims, claiming
Elon Musk thinks the evidence of a whistleblower offers him additional justification to cancel the Twitter transaction.
Elon Musk issued his first letter of dismissal in July, claiming that Twitter had misled him on the number of bots using its platform and that the business had refused to provide him with the data he required to make his own decisions. Despite having access to the "firehose" API, which contains every tweet, he still did this.
The Wall Street Journal reported on Thursday that after months of pay negotiations, Twitter had agreed to pay Zatko nearly $7 million before he departed the firm in regard to lost compensation. It is yet another reason, according to Musk's attorneys, why his agreement to buy the social network
A Delaware court will decide whether Musk is truly permitted to cancel the agreement after Twitter sued him in July for attempting to do so. Musk will be permitted to use Zatko's claims as evidence in his lawsuit, according to Chancellor Kathaleen McCormick's previous decision, and there will be "limited" discovery on documents connected to the whistleblower's report. Musk cited the initial reports when he submitted the second notice of termination in August.
The case is scheduled to start on October 17. A request for comment from Twitter was not immediately answered.
