Twitter’s (TWTR) ex-security chief has filed a whistleblower complaint with claims that, if proven true, could make it easier for Elon Musk to walk away from his $44 billion deal to buy the social media company.
Peiter “Mudge” Zatko, a widely respected hacker who was fired in January, sent a 200-page complaint to federal officials accusing Twitter’s top executives of violating laws and regulations by covering up lax security, and eschewing resources to fully understand its prevalence of fake accounts. The issue of fake accounts plays a central role in the legal battle between Musk and Twitter, which is suing him in an attempt to force him to go through with the deal.
The whistleblower claims regarding fake accounts present a considerable tide change in the lawsuit, set for trial in Delaware Chancery Court beginning Oct. 17. Prior to the claims, some legal experts had predicted that the seller-friendly merger agreement would tip the case in Twitter’s favor, with Delaware's Chancellor ordering Musk to go through with the deal.
“This changes everything,” University of Iowa law professor Robert Miller said about the claims. “This is like a godsend for Musk. The whistleblower’s complaints, if true…are exactly what Musk needs to get out of the deal. I mean, tailor made.”
Weeks after agreeing on April 25 to acquire Twitter’s outstanding stock at $54.20 per share, Musk posted on Twitter hinting of cold feet. A termination letter from his lawyers followed,...
Oil prices plunge as US and Iran declare Strait of Hormuz open Oil prices tumbled after Iranian officials said they would allow commercial traffic to resume in the Strait of Hormuz, with stock m...