Elon Musk Amends Twitter Suit to Claim Fraud After Whistleblower's Allegations (nbcnews.com) 145
Reuters reports:
Billionaire Elon Musk accused Twitter of fraud by concealing serious flaws in the social media company's data security, which the entrepreneur said should allow him to end his $44 billion deal for the company, according to a Thursday court filing. Musk, the world's richest person, amended his previously filed lawsuit by adopting allegations by a Twitter whistleblower, who told Congress on Tuesday of meddling on the influential social media platform by foreign agents.
The chief executive of electric vehicle maker Tesla also alleged that Twitter hid from him that it was not complying with a 2011 agreement with the Federal Trade Commission regarding user data.
"Needless to say, the newest revelations make undeniably clear that the Musk Parties have the full right to walk away from the Merger Agreement — for numerous independently sufficient reasons," said the amended countersuit.
Twitter's lawyers countered that the whistleblower claims weren't sufficient grounds for terminating the deal, according to the article. And they added that the whistleblower was in fact fired for poor performance, and that while they've investigated the whistleblower's allegations internally they were found to have no merit.
They also disagree with Musk's characterization of the allegations as proving "fraud" and "breach of contract."
The chief executive of electric vehicle maker Tesla also alleged that Twitter hid from him that it was not complying with a 2011 agreement with the Federal Trade Commission regarding user data.
"Needless to say, the newest revelations make undeniably clear that the Musk Parties have the full right to walk away from the Merger Agreement — for numerous independently sufficient reasons," said the amended countersuit.
Twitter's lawyers countered that the whistleblower claims weren't sufficient grounds for terminating the deal, according to the article. And they added that the whistleblower was in fact fired for poor performance, and that while they've investigated the whistleblower's allegations internally they were found to have no merit.
They also disagree with Musk's characterization of the allegations as proving "fraud" and "breach of contract."