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Twitter says whistleblower payment does not breach deal terms as claimed by Musk
Elon Musks Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. — Reuters pic

SAN FRANCISCO, Sept 12 — Twitter Inc said today payments made to a whistleblower did not breach any terms of its US$44 billion (RM198 billion) buyout by Elon Musk, after the world’s richest man cited the move as another reason to scrap the deal.

In a letter to Twitter on Friday, lawyers for Musk said Twitter’s failure to seek his consent before paying US$7.75 million to whistleblower Peiter Zatko and his lawyers violated the merger agreement, which restricts when Twitter could make such payments.

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Zatko, who was fired by Twitter in January as the company’s security head, last month accused the social media firm of falsely claiming it had a solid security plan and making misleading statements about its defences against hackers and spam accounts.

The whistleblower will meet the US Senate Judiciary committee on September 13 to discuss the allegations. Separately, Twitter is holding a special meeting tomorrow for shareholders to vote on the merger.

Musk, who also runs the electric car company Tesla Inc, has accused Twitter of misrepresenting the prevalence of spam or bot accounts on its platform and has sought to terminate the deal citing those reasons.

A trial in Delaware Chancery Court is scheduled to begin on October 17.

Musk’s lawyers were not immediately available for comment. — Reuters

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