Posted on 08/24/2022 11:18:29 AM PDT by Twotone
A whistleblower’s complaint that Twitter misled federal regulators about the company’s security risks could provide Elon Musk with fresh ammunition in his bid to get out of buying the company for $44 billion.
Until now, Musk’s legal showdown with Twitter has primarily centered around claims that the company misled the billionaire about the number of bot and spam accounts on its platform.
The whistleblower complaint by Twitter’s former security chief Peiter Zatko gives Musk new angles to pursue in his legal battle, such as claims that Twitter failed to disclose weaknesses in its security and data privacy.
It provides “a different basis for fraud,” said Ann Lipton, a professor at Tulane Law School.
It is not clear if and how Musk’s team will use the whistleblower’s information, although Musk’s lawyer, Alex Spiro with Quinn Emanuel Urquhart & Sullivan, said on Tuesday that a subpoena had been issued to Zatko.
“We found his exit and that of other key employees curious in light of what we have been finding,” Spiro said in a statement.
Legal experts said the whistleblower complaint introduced uncertainty to Musk’s showdown with Twitter, rather than dramatically transforming a case that corporate law specialists have said favors Twitter.
“Volatility is helpful if you’re not playing a strong hand. It creates some possibility that something crazy might happen,” said Eric Talley, a professor at Columbia Law School, of the whistleblower complaint.
Twitter’s stock was down about 5.9% in late trading at $40.44 a share.
(Excerpt) Read more at cnbc.com ...
I would say that ecause this person is the former head of security for Twatter that Twatter’s goose is cooked.
Bannon had a very interesting rant yesterday (or maybe the day before) about how twitter was really more of an intelligence operation than an actual company or marketplace of ideas.
I was not sure but thought a bit more about what he said and he may well be right......
i wouldn’t put it past some in the security state to have helped thwart this sale. it is a massive dis info platform for the left
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