On August 2, Elon Musk and his attorneys filed a fresh Termination Letter with the SEC. In this letter highlighted the former security chief of Twitter’s assertions that the company routinely attempted to deceive regulators over the platform’s security. With this, Musk aims to get out of the $44 billion arrangement with Twitter.
Last week, Twitter’s former security chief revealed some previously unknown facts regarding the company’s security, alleging that Twitter had lied about the platform’s safety and the estimation of the bot population. These allegations are made by Peters Mudge Zatko, a cybersecurity specialist and whistleblower. Additionally, he said that Twitter dismissed him for speaking out about the flaws in the platform.
Now, Musk is relying on Peiter Mudge Zatkos’ accusations in an effort to get out of Twitter’s $44 billion agreement. The world’s richest man thinks Twitter deceived the SEC by making untrue assertions. Additionally, a judge recently mandated that Twitter provide Musk’s legal team with 9,000 account details, which could be useful in their defense.
The Musk Parties have the right to terminate the Merger Agreement in accordance with its terms, which are more fully outlined below, as a result of Twitter’s alleged violations of the following sections of the Merger Agreement, Musk stated in the termination letter.
ELON MUSK MAY RECEIVE A FINE OR BE COMMANDED TO COMPLETE THE TWITTER DEAL One of Elon Musk’s options for terminating his Twitter contract is to mention Peiter Mudge Zatkos’ remarks. Musk will be required to pay a $1 billion fine or may even be required to carry out a specified performance if he and his attorneys can’t persuade the judge. To put it another way, he may end up spending $44 billion to purchase Twitter. To appear in court in October was already agreed upon by both parties.
Professor of law Ann Lipton thinks the Zatkos allegation is a shaky point in the case. She said that Musk’s arguments don’t seem to be very persuasive.
Advertisement Naturally, Twitter has responded to Musk’s most recent letter of termination by claiming that the situation is illegitimate and wrongful. The business also asserts that the claims made against Zatkos lack crucial context and are replete with contradictions and errors.
Twitter representatives said that, in contrast to your letter’s claims, Twitter has not violated any of its promises or commitments under the Agreement. Twitter plans to uphold the terms of the Agreement and complete the transaction under such conditions after reaching an agreement with the Musk Parties.