Twitter Refutes Elon Musk's Claims of Breach of Agreement Over Whistleblower Payment: Report

Elon Musk attemped to terminate his deal with Twitter on Friday over the payment of $7.75 million (roughly Rs. 60 crore) to a whistleblower without his consent.

Twitter Refutes Elon Musk's Claims of Breach of Agreement Over Whistleblower Payment: Report

Photo Credit: Reuters

The legal tussle between Elon Musk and Twitter is set to to begin in a US court in October

Highlights
  • Twitter was sent a fresh letter of termination by Elon Musk last week
  • Musk has claimed Twitter violated the terms of the acquisition deal
  • Twitter has denied it breached the terms of the agreement with Musk

Twitter reportedly stated that it did not breach any of the terms of its $44 billion (roughly Rs. 3,49,900 crore) takeover deal with Tesla CEO Elon Musk on Monday. The microblogging service was accused by Musk of violating the conditions of the deal as he made another attempt to exit the deal. While he has previously claimed that he was misled regarding the number of fake or spam users on Twitter, Musk on Friday cited Twitter's payment of $7.75 million (roughly Rs. 60 crore) to Peiter Zatko as a reason to walk away from the deal. 

According to a report by Reuters, Twitter has responded to a letter sent by Elon Musk's lawyers to Twitter, stating that the company did not breach any of the conditions part of the deal to acquire the microblogging platform that was signed earlier this year.

Musk's lawyers sent a letter to Twitter on Friday, stating that the company had not sought his consent before paying $7.75 million (roughly Rs. 60 crore) to Zatko, according to the report. The Tesla CEO's lawyers have also claimed that Twitter was restricted from making these payments, and the failure to seek his consent was a violation of the merger agreement. 

The whistleblower, who was formerly the head of security at Twitter, was fired in January. Last month, it was reported that Zatko had filed a complaint claiming Twitter misled regulators by stating that it had a solid security plan,with regard to hackers and its handling of spam or fake accounts.

 On Friday, it was reported that Musk's laywers had claimed that the company paid its former chief of security and whistleblower a rum of $7 million (roughly Rs. 55 crore) to remain silent about operational problems within the company.

As per the report, Musk's lawyer Alex Spiro made the claim during a hearing last week ahead of the upcoming October court battle between Elon Musk and Twitter. The report suggests that the whistleblower is Zatko, who is believed to have been paid by the company for lost compensation after leaving the company.


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Further reading: Twitter, Elon Musk, Peiter Zatko
David Delima
As a writer on technology with Gadgets 360, David Delima is interested in open-source technology, cybersecurity, consumer privacy, and loves to read and write about how the Internet works. David can be contacted via email at DavidD@ndtv.com, on Twitter at @DxDavey, and Mastodon at mstdn.social/@delima. More
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