Elon Musk’s legal team cited allegations from a Twitter whistleblower in a new request to terminate Musk’s agreement to purchase Twitter for about $44 billion, according to a document filed with the Securities and Exchange Commission Monday.
The latest filing comes as Musk continues his battle to back out of the deal, as he awaits a trial set for mid-October with Twitter to resolve whether he has to go through with the purchase.
Musk’s argument to retreat from his purchase, agreed to in April, is based largely on allegations that Twitter failed to provide him with accurate information about the number of spam bot accounts on the platform in breach of the term agreements.
In former Twitter security chief Peiter Zatko’s complaint, reported by The Washington Post and CNN last week, he alleged the company is susceptible to hacks by foreign governments and is not in compliance with a 2011 consent decree from the Federal Trade Commission to improve security on the platform.
He also alleged the company does not accurately represent the number of spam bots on the account based on its count of monetizable daily active users.
“These allegations, if true, demonstrate that Twitter has breached the following provisions of the Merger Agreement, thereby giving the Musk Parties the right to terminate the Merger Agreement,” Musk’s lawyers wrote in the SEC filing.
A spokesperson for Twitter cited a letter the company filed Tuesday in response to Musk’s latest request.
Twitter’s letter...
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