Friday, September 30, 2022
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Musk Cites Twitter Whistleblower Claims As New Justifications For Pulling Out Of Acquisition

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

Musk alleges that the allegations, if true, represent violations on the Twitter side of the acquisition deal and should allow him to back out of the deal. The additional justifications outlined in the Aug. 29 letter are in addition to the justifications Musk cited when he first announced that he was seeking to retire, 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 his own letter on Tuesday he rejected the billionaire businessman’s latest attempt to cancel the deal, calling it “invalid and unfair.”

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 material context.”

Legal experts have said that the Zatko allegations are likely to play a role in the litigation between Musk and Twitter; the company has asked a Delaware court to force Musk to go through with the deal.

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

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