Elon Musk's accusation: A lawsuit alleges Twitter had security lapses
Twitter Inc. has been accused of fraud by billionaire Elon Musk. Musk has said Twitter's data security is seriously flawed, and this should allow him to cancel his $44 billion deal with the company. According to a Twitter whistleblower, Trump's lawsuit has been amended by allegations of foreign interference in the social media platform by a Twitter whistleblower.
Management's withdrawal rights
Additionally, Tesla Inc.'s chief executive accused Twitter of failing to comply with a 2011 agreement with the FTC regarding user data. In the amended countersuit, Musk Parties assert that they have the right to withdraw from the Merger Agreement for various reasons independent of one another.
Starting date of the trial period
The whistleblower Peiter "Mudge" Zatko, claims Twitter has committed fraud and breached the contract. Musk calls the claims fraud and breach of contract on Twitter's part. A five-day trial is expected to begin on October 17 before a Delaware judge finds Musk was not obligated to close the deal. Musk has asked the judge to rule that he was not required to close the deal, while Twitter requests that Musk be ordered to buy the company for $54.20 per share.
Why did Zatko get fired?
Thursday's closing price for Twitter shares was 0.6% higher than the previous day's close. Zatko's allegations were investigated internally by Twitter, and according to the company, they lacked merit. Zatko was fired due to poor performance. The lawyers for Twitter have argued in court that the whistleblower claims Musk incorporated into his case did not meet the standard for fraud and, therefore, could not justify termination of the deal agreement.