Elon Musk has specified more reasons as to why his Twitter Deal should be officially terminated. To give further notice of the agreement’s termination, Musk’s attorney filed a letter he sent to Twitter with the U.S. Securities and Exchange Commission (SEC) on Monday.
On July 8, Elon Musk officially ended the Twitter deal worth $44 billion. Before terminating the agreement, Twitter sued the Spacex boss, forcing him to sign the deal. This led to Musk countersuing the social media giant.
The letter sent to Twitter by Musk’s lawyer, Chief Legal Officer Vijaya Gadde, had the following statement. “Allegations regarding certain facts, known to Twitter prior to and as of July 8, 2022, but undisclosed to the Musk parties prior to and at that time, have since come to light that provide additional and distinct bases to terminate the merger agreement.”
Peiter “Mudge” Zatko, a former chief security officer at Twitter, filed a complaint report on July 6 with Congress, the SEC, the Federal Trade Commission (FTC), and the Department of Justice (DOJ). The Washington Post recently sent out the report.
Elon Musk’s lawyer said. “The Zatko complaint alleges far-reaching misconduct at Twitter – all of which was disclosed to Twitter’s directors and senior executives, including [CEO] Parag Agrawal – that is likely to have severe consequences for Twitter’s business.”
One of Zatko’s complaints was that “Twitter is in material noncompliance.” In addition, he mentioned that Twitter is going against a decree he signed in 2011 with FTC. In Zatko’s words. “Twitter’s platform is built in significant part on the misappropriation and infringement of third-party intellectual property. Twitter is uniquely vulnerable to systemic disruption resulting from data center failures or malicious actor, a fact which Twitter leadership (including its CEO) have ignored and sought to obfuscate.”
Zatko said, “Twitter’s SEC filings contained untrue statements of material fact or omitted to state material facts necessary to make the statements therein not misleading. Twitter’s CEO, Parag Agrawal, knowingly presented false and misleading reports to Twitter’s board of directors in order to cover up flagrant vulnerabilities in Twitter’s security and data protection infrastructure.”