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Saturday, April 18, 2026

Judge rules that Elon Musk can use Twitter whistleblower claims - Axios

A Delaware court on Wednesday ruled that Elon Musk will be allowed to introduce claims from Twitter whistleblower Peiter "Mudge" Zatko into his countersuit against the social media company. It also denied Musk's request to delay the October trial.

Why it matters: The whistleblower's claims, which include that Twitter violated a 2011 consent decree with the U.S. government, introduce a new legal wrinkle into Musk's attempt to back out of his $44 billion takeover offer for the social media company.

  • On the one hand, Zatko undermines Musk's existing arguments that Twitter has lied about the number of bot accounts on its platform.
  • On the other hand, Zatko also argues that Twitter violated its 2011 consent decree with the U.S. government, which Musk could try to argue is a material breach.

Read the ruling:

We're a long way from finding out what will happen to Twitter after it has its day (or week) in court with Elon Musk, which he's still trying to delay. But one potential outcome involves the Tesla CEO being forced to acquire the social media company, even if he doesn't want it anymore.

The big picture: "Specific performance" is a legal concept that's not a historically common outcome in U.S. courts (except in certain areas like land purchases), but the Delaware Chancery Court has gone that route in a number of merger and acquisition (M&A) cases.

In another well-known deal dispute not involving Twitter and Elon Musk, the Delaware Chancery Court ordered chemical maker...



Read Full Story: https://www.axios.com/2022/09/07/elon-musk-twitter-whistleblower-claims