Tesla CEO Elon Musk outlined new reasons for ending the $44 billion purchase of Twitter in a new filing with the U.S. Securities and Exchange Commission (SEC). Citing a whistleblower report, Musk’s attorney said the allegations, known to the social media giant but not disclosed to Musk, show “far-reaching misconduct at Twitter.”
Elon Musk Presents More Reasons to Termination of Twitter Agreement in New SEC Filing
Tesla CEO Elon Musk has found more reasons to end a $44 billion offer to acquire Twitter Inc. Musk’s lawyer submit a letter he sent to Twitter with the U.S. Securities and Exchange Commission (SEC) on Monday to provide further notice of the deal’s termination.
In a letter to Twitter’s Chief Legal Officer Vijaya Gadde, Musk’s attorney detailed:
Allegations related to certain events, known to Twitter before and as of July 8, 2022, but not disclosed to Musk’s parties before and at that time, have come to light. provides additional and distinct grounds for terminating a merger agreement.
The letter refers to a whistleblower report filed with Congress, the SEC, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) filed on July 6 by Peiter “Mudge” Zatko, a former executive Twitter’s security chief. The report was recently published in the Washington Post.
Musk’s attorney stated that “Zatko’s complaint alleges far-reaching misconduct at Twitter – all of which were disclosed to Twitter’s senior directors and executives, including [CEO] Parag Agrawal – that has the potential to have devastating consequences for Twitter’s business.”
For example, Zatko alleges that “Twitter is not compliant” with data privacy, unfair trade practices, and consumer protection laws and regulations. Furthermore, he said Twitter violated a consent decree it signed with the FTC in 2011.
Alleging that “Twitter’s platform is built in substantial part on the appropriation and infringement of third-party intellectual property rights,” the accuser stated:
Twitter is particularly vulnerable to system disruptions due to data center failures or malicious actors, a fact Twitter leadership (including its CEO) has overlooked and sought to cover up.
Furthermore, Zatko explained that “Twitter’s SEC filings contain material fact claims that are not truthful or omitted material facts necessary to make the statements therein not misleading.”
He also alleged that “Twitter’s CEO, Parag Agrawal, knowingly presented false and misleading reports to Twitter’s board of directors to cover up obvious vulnerabilities in the security infrastructure Twitter privacy and data protection.”
Several authorities in different countries are currently investigating the allegations by Zatko, Musk’s attorney conveyed, adding:
Twitter will also now face a myriad of civil lawsuits, asserting claims to comply with various cybersecurity and privacy laws, state consumer protection laws, false advertising laws, and more. theft of intellectual property and misappropriation of property and common law requirements, such as ill-gottenation, fraud, and breach of contract.
There are also issues of intellectual property. The whistleblower revealed that “Twitter never appears to have acquired rights to Twitter’s core machine learning models, which Musk’s Parties understand to be the foundation of the Twitter platform itself,” Musk’s attorney wrote. .
The case is expected to go to trial in Delaware Chancery Court in five days starting October 17. However, Musk’s legal team is seeking to delay the trial by a month due to the disclosure by Musk. delator.
Do you think Elon Musk has enough reason to walk away from the $44 billion Twitter acquisition? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This newspaper only gives true information. It is not a direct offer or solicitation to buy or sell, or a recommendation or endorsement for any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or materials. goods or services mentioned in this article.