December 4, 2022

According to a court filing on Thursday, billionaire Elon Musk claimed Twitter Inc. committed fraud by hiding severe weaknesses in the social media company’s data security, which the businessman claimed should have allowed him to terminate his $44 billion contract for the company.

Musk, the richest man in the world, updated his earlier complaint by incorporating claims made by a Twitter whistleblower, who on Tuesday informed Congress of foreign operatives’ interference on the significant social media network.

Tesla Inc.’s CEO said that Twitter concealed from him the fact that it was not abiding by a 2011 deal with the Federal Trade Commission on user data.

The amended countersuit stated that “it goes without saying that the latest facts make clearly evident that the Musk Parties have the complete right to walk away from the Merger Agreement — for several independently sufficient grounds.”
Peiter “Mudge” Zatko, a former head of Twitter security, made the allegations, and according to Musk, they amount to fraud and a breach of Twitter’s contract.
While Twitter wants the judge to order Musk to buy the firm for $54.20 per share, Musk has requested a Delaware judge to rule that he was not required to complete the transaction. On October 17, a five-day trial is set to start.

(source : Reuters)

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