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Elon Musk accuses Twitter of security lapses in court filing

Stock Markets Sep 15, 2022 07:12PM ET
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© Reuters. Figurines with computers and smartphones are seen in front of Twitter logo in this illustration, July 24, 2022. REUTERS/Dado Ruvic/Illustration
 
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By Tom Hals

WILMINGTON, Del. (Reuters) -Billionaire Elon Musk accused Twitter Inc (NYSE:TWTR) of fraud by concealing serious flaws in the social media company's data security, which the entrepreneur said should allow him to end his $44 billion deal for the company, according to a Thursday court filing.

Musk, the world's richest person, amended his previously filed lawsuit by adopting allegations by a Twitter whistleblower, who told Congress on Tuesday of meddling on the influential social media platform by foreign agents.

The chief executive of electric vehicle maker Tesla (NASDAQ:TSLA) Inc also alleged that Twitter hid from him that it was not complying with a 2011 agreement with the Federal Trade Commission regarding user data.

"Needless to say, the newest revelations make undeniably clear that the Musk parties have the full right to walk away from the merger agreement -- for numerous independently sufficient reasons," said the amended countersuit.

Twitter said in a statement it looked forward to the five-day trial scheduled to start Oct. 17 in Delaware. "Mr. Musk’s claims are factually inaccurate, legally insufficient and commercially irrelevant," the company said.

Musk said the claims by the whistleblower, former head of Twitter security Peiter "Mudge" Zatko, amounted to fraud and breach of contract by Twitter.

Musk has asked a Delaware judge to find that he was not obligated to close the deal while Twitter wants the judge to order Musk to buy the company for $54.20 per share.

Twitter shares ended up 0.6% on Thursday at $42.14.

Twitter has said it conducted an internal investigation of Zatko's allegations and determined they lacked merit. The company has said Zatko was fired for poor performance.

Twitter's lawyers have said in court that the whistleblower claims that Musk folded into his case were either not grounds for terminating the deal agreement or failed to meet the standard for fraud.

Elon Musk accuses Twitter of security lapses in court filing
 

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Comments (3)
gab nea
gab nea Sep 15, 2022 4:36PM ET
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he failed to do his due diligence before he signed, now he is whining about finding things out afterwards! babyish!
Patron Silver
Patron Silver Sep 15, 2022 4:36PM ET
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contracts have contingencies. If not met he could pull out
gab nea
gab nea Sep 15, 2022 4:34PM ET
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cry baby!
gab nea
gab nea Sep 15, 2022 4:34PM ET
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he didnt do his due diligence before he signed the deal, now he is crying when he finds things out after the fact! welcome to the world of business, cry baby!
 
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