Elon Musk has sent Twitter an additional letter terminating the $44 billion agreement, citing a recent whistleblower complaint made by the former security head of the social media company as additional justification.
Famous hacker Peiter Zatko, often known as “Mudge,” alleged in his complaint last week that Twitter prioritised user growth over eliminating spam and made false claims about its security measures.
In a letter dated August 29, Musk and his legal team said that if the claims are accurate, billion agreement Twitter has violated some of the terms of the merger agreement.
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However, Twitter said in its regulatory filing that the new termination notice was illegal and void under the terms of the agreement.
Musk has also served a subpoena on Zatko, asking for details mostly regarding how the microblogging platform measures spam accounts.
Musk decided to terminate the contract in July, claiming that the company had misled him and regulators about the true number of spam or bot registrations on the website. microblogging site.According to a regulatory filing made by Musk on Tuesday, his legal team claimed that claims regarding specific facts that Twitter was aware of before July 8 but that were not reported to them create additional and different grounds to terminate the agreement.
The most recent event takes place as the two sides get ready for a five-day trial that will begin on October 17 at the Wilmington Court of Chancery. Twitter is demanding that Musk be given the go-ahead to buy it at the accepted share price of $54.20 from Chancellor Kathaleen McCormick.. Before the bell, shares of Twitter were down 2.5% at $39.02.