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{"id":13429,"date":"2022-08-30T14:42:00","date_gmt":"2022-08-30T14:42:00","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/08\/30\/elon-musk-says-whistleblowers-testimony-gives-him-more-reasons-to-dump-twitter-deal\/"},"modified":"2022-08-30T14:42:02","modified_gmt":"2022-08-30T14:42:02","slug":"elon-musk-says-whistleblowers-testimony-gives-him-more-reasons-to-dump-twitter-deal","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/08\/30\/elon-musk-says-whistleblowers-testimony-gives-him-more-reasons-to-dump-twitter-deal\/","title":{"rendered":"Elon Musk says whistleblower\u2019s testimony gives him more reasons to dump Twitter deal"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/8\/30\/23328499\/elon-musk-twitter-deal-termination-letter-whistleblower-testimony-mudge-zatko<\/a>
\n
<\/br><\/code><\/p>\n

\n

Elon Musk says the disclosures of Twitter\u2019s former security chief<\/a> have given him new justifications to walk away from his $44 billion deal to buy the social media platform. <\/p>\n

Musk\u2019s lawyers filed a new \u201cTermination Letter\u201d with the SEC<\/a> on August 29th, which cites the testimony of Twitter whistleblower Peiter \u201cMudge\u201d Zatko as evidence that Twitter misled Musk in the parties\u2019 merger agreement. Specifically, Musk claims that Twitter\u2019s declaration in the merger agreement that it had not misled the SEC is false, citing Zatko\u2019s allegations. In Zatko\u2019s own complaints, which were published last week, he claimed that Twitter repeatedly and knowingly misled regulators about the security of its platform. <\/p>\n

\u201c[Zatko\u2019s] 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 pursuant to its terms as more fully described below,\u201d states Musk\u2019s new termination letter<\/a>. <\/p>\n

Musk, of course, is desperate to back out of the deal, but needs to prove to a judge that Twitter violated some aspect of the merger agreement. If he doesn\u2019t, he\u2019ll have to pay a $1 billion fine or<\/em> be forced to carry out \u201cspecific performance\u201d (meaning: actually buy Twitter). <\/p>\n

It\u2019s not clear, though, if Musk\u2019s new termination letter strengthens his case. Musk\u2019s first termination letter was filed in the beginning of July<\/a>, and made similar accusations that Twitter misled the SEC in its regulatory disclosures (among other claims). This new letter essentially repeats the same charge, adding Zatko\u2019s complaint as additional evidence.<\/p>\n

Law professor Ann Lipton, who\u2019s analyzed the credibility of Musk\u2019s legal case<\/a> for walking away from the Twitter deal, previously said Zatko\u2019s complaint would be something of a \u201cwild card\u201d in the legal case. However, prior to the appearance of this new termination letter, she said Musk\u2019s arguments \u201cdo not appear to be very strong.\u201d<\/p>\n

In their response to the new termination letter, Twitter\u2019s legal representatives described Musk\u2019s case<\/a> as \u201cinvalid and wrongful.\u201d They repeated Twitter\u2019s official response to Zatko\u2019s complaint; namely, that his allegations are \u201criddled with inconsistencies and inaccuracies and lack important context.\u201d<\/p>\n

\u201cContrary to the assertions in your letter, Twitter has breached none of its representations or obligations under the Agreement,\u201d write the company\u2019s representatives. \u201cTwitter intends to enforce the Agreement and close the transaction on the price and terms agreed upon with the Musk Parties.\u201d<\/p>\n

Update, Tuesday 30th August, 09:15AM ET:<\/strong><\/em> Story updated with response from Twitter. <\/em><\/p>\n<\/div>\n


<\/br><\/code><\/p>\n

Source: https:\/\/www.theverge.com\/2022\/8\/30\/23328499\/elon-musk-twitter-deal-termination-letter-whistleblower-testimony-mudge-zatko<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: Elon Musk says the disclosures of Twitter\u2019s former security chief have given him new justifications to walk away from his $44 billion deal to buy the social media platform. Musk\u2019s lawyers filed a new \u201cTermination Letter\u201d with the SEC on August 29th, which cites the testimony of Twitter whistleblower Peiter \u201cMudge\u201d Zatko as evidence […]<\/p>\n","protected":false},"author":1,"featured_media":13430,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17,8],"tags":[18],"class_list":["post-13429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech","category-technology","tag-tech"],"yoast_head":"\nElon Musk says whistleblower\u2019s testimony gives him more reasons to dump Twitter deal - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/08\/30\/elon-musk-says-whistleblowers-testimony-gives-him-more-reasons-to-dump-twitter-deal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Elon Musk says whistleblower\u2019s testimony gives him more reasons to dump Twitter deal - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Elon Musk says the disclosures of Twitter\u2019s former security chief have given him new justifications to walk away from his $44 billion deal to buy the social media platform. 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