Wilton, Delaware According to a court filing on Thursday, billionaire Elon Musk claimed Twitter committed fraud by hiding severe weaknesses in the social media giant’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 previously filed case by incorporating claims made by a Twitter whistleblower, who on Tuesday informed Congress of foreign agents’ interference on the significant social media network.
Tesla’s CEO also said that Twitter concealed from him the fact that it was not abiding by a 2011 deal with the Federal Trade Commission regarding user data.
The amended countersuit stated that it is obvious from the most recent revelations that the Musk Parties have every right to terminate the Merger Agreement for a variety of independently adequate reasons.
Peiter Mudge Zatko, a former head of Twitter security, made allegations that Musk claimed amounted to fraud and contract violations by Twitter.
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.
Late Thursday trading saw a 0.6% increase in Twitter shares.
According to Twitter, it looked into the claims made by Zatkos internally and found them to be unfounded. According to the business, Zatko was let go for subpar work.
Twitter’s attorneys testified in court that the whistleblower allegations that Musk included into his case were either insufficient to void the contract or fell short of the requirements for fraud.