Follow Us

Musk cites Twitter whistleblower allegations in another notice to cancel deal

Musk's attorneys alleged that Twitter "withheld" information

Published: August 30, 2022 1:47pm

Updated: August 30, 2022 3:35pm

Elon Musk filed another notice to terminate his $44 billion deal to purchase Twitter, citing a former security chief's whistleblower claims about problems on the platform.

Ex-Twitter security chief Peiter Zatko filed a complaint last week, alleging that the company violated a Federal Trade Commission settlement and is unable to protect its users' data.

Musk's attorneys wrote in a Securities and Exchange Commission filing Monday that the additional termination notice is being filed because Twitter "withheld" the whistleblower information from Musk.

"Twitter will also now face a myriad of civil lawsuits," his lawyers predicted after the Zatko report. "This still-rolling litigation avalanche brings with it billions of dollars of potential damages, fines, and penalties, to say nothing of the significant reputational and operational harm that comes in parallel."

The Tesla CEO first attempted to cancel his purchase of Twitter in July, arguing that the company has "not complied with its contractual obligation." Twitter sued in an attempt to force him to purchase the platform, and the parties are currently set to go to trial in October.

The Facts Inside Our Reporter's Notebook

Just the News Spotlight