Elon Musk told Twitter Inc. that a $7 million severance payment to a whistleblower who raised questions about problems at the company gives him another reason to walk away from the purchase of the political social media platform. its $44 billion price tag.
Elon Musk told Twitter Inc. that a $7 million severance payment to a whistleblower Who raising questions about problems at the company gave him another reason to forgo his $44 billion purchase social media communication.
Musk is trying to put an end to a Twitter acquisition after claiming the platform misled him and investors in numbers. Spam and bot accounts among its more than 230 million users. Twitter countered that Musk’s bot concerns were an excuse to get out of a deal the world’s richest man is said to have created buyer’s remorse.
Musk’s attorneys, in a filing Friday, said that as part of the purchase agreement, Twitter needs to notify the billionaire before spending $7.75 million in a separation settlement on the 28th. /6 with Peiter Zatko, the company’s former chief security officer. Musk’s lawyers said they became aware of Zatko’s settlement on September 3 when Twitter filed the paperwork with the court. Zatko is scheduled to testify before a US Senate committee next week about his concerns about lax security, privacy, and the number of bots on the platform. He has also been subpoenaed to testify in the Twitter lawsuit.
Both sides are preparing for a hearing on Twitter’s lawsuit in October to force Musk to complete the settlement. Judge Kathaleen St. Delaware Premier Jude McCormick on Wednesday approved Musk’s request to add Zatko’s allegations to his counterclaims. But she turned down his offer to delay the trial.
A Twitter representative did not immediately respond to an email request for comment.
This is the third time Musk has told Twitter officials that he is withdrawing his $54.20-per-share bid for the platform for violating a repurchase agreement related to the transactions.
“This layoff pay violated “a requirement that Twitter executives run the company” in the ordinary course of business “while the legal dispute over Musk’s attempt to resolve the settlement was resolved.
The case is Twitter v Musk, 22-0613, Delaware Premier Court (Wilmington).