Elon Musk has accused Twitter of fraud, accusing the company of deliberately covering up a serious breach in its data security, according to newly released court documents. Elon Musk originally planned to buy Twitter for $44 billion, but now he wants to end the deal.
Also, in 2011, Twitter signed an agreement with the FTC regarding user data, but Twitter did not comply with the agreement, and Elon Musk believes it is unreasonable for Twitter to hide it.
Elon Musk’s side said, “There is no doubt that the latest disclosures show that Elon Musk’s side has the right to abandon the merger agreement, and there are many, quite good reasons for doing so.”
Elon Musk also stressed that Twitter was in clear fraud and that it violated the agreement, according to insider revelations by former Twitter security chief Peiter “Mudge” Zatko.
Elon Musk is asking a Delaware judge to rule that he is not obligated to complete the deal, while Twitter wants the judge to force Elon Musk to complete the acquisition at $54.20 per share, with both sides set to participate in a five-day trial starting Oct. 17.
Twitter said the company has conducted an internal investigation into Zatko’s accusations and found his claims unfounded. Twitter also said Zatko was fired for poor performance. Twitter’s lawyers, for their part, said Elon Musk cited Zatko’s statements and that the allegations did not justify closing the deal and did not meet the standard for fraud.
