Elon Musk says Twitter whistleblower fee is one more reason to scrap merger
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Elon Musk contended that Twitter Inc’s (TWTR.N) determination to pay tens of millions of {dollars} to a whistleblower it had fired offers the world’s richest individual one other justification for terminating his $44 billion settlement to purchase the social media firm.
In a Friday letter to Twitter, attorneys for Musk mentioned Twitter’s failure to hunt his consent earlier than paying $7.75 million to Peiter Zatko and his attorneys violated the merger settlement, which restricted when Twitter might make such funds.
The fee, which included $7 million for Zatko, “cannot be cured,” and Musk is subsequently “not required” to finish the merger, the letter mentioned. A duplicate was filed with the U.S. Securities and Exchange Commission.
Twitter didn’t instantly reply to a request for remark.
It has mentioned it was dedicated to finishing the merger, which requires Musk to pay $54.20 per share for the San Francisco-based firm. Twitter shares closed Friday at $42.19.
Zatko, often known as Mudge, had been Twitter’s high safety government earlier than being fired in January.
He later advised regulators that Twitter misled them and the general public about its safety practices and the way it fights hackers and spam.
Lawyers for Musk mentioned the severance fee was made below a June 28 separation settlement between Twitter and Zatko.
Musk, who additionally runs the electrical automobile firm Tesla Inc (TSLA.O), declared the merger void 10 days later, accusing Twitter of misrepresenting the prevalence of spam or bot accounts on its platform.
Twitter rejected Musk’s claims and sued him to carry him to the merger, claiming he had gotten chilly toes as geopolitical considerations and rising inflation rattled markets.
Musk later countersued Twitter, and on Friday amended his case to include Zatko’s claims, courtroom information present.
A trial in Delaware Chancery Court is scheduled to start on Oct. 17.
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