Billionaire entrepreneur Elon Musk, the owner of SpaceX, has given a new justification for withdrawing from the $44 billion Twitter purchase deal.
Elon Musk has stated in a letter to the Securities Exchange Commission that Twitter paid a large sum of money in compensation for firing a whistleblower employee.
He claimed in the petition that he was not told by Twitter about the billions of rupees paid by Twitter to its security chief Peter Zatko as compensation for his dismissal.
He said the ousted security chief was planning to file a whistleblower complaint against the organization over Twitter’s security practices.
Elon Musk’s attorney argued to the commission that the lack of consent from Elon Musk to pay Zatco provides another legal justification for Elon Musk to back out of the deal.
Twitter disputed that, with Twitter’s lawyer arguing that “my friends want to say that Twitter should have told Elon Musk that a former employee was accusing the company, which is the investigation.” I have proved baseless allegations, there is no justification in this argument.
Elon Musk, the world’s richest man, wrote in his withdrawal letter that he was canceling the deal because Twitter misled him about fake accounts and bots.
In a mixed ruling this week, the court said Elon Musk must also disclose disclosures made by whistleblower Zatko.
It should be noted that Elon Musk is facing a legal battle on the request of Twitter after withdrawing from the Twitter contract and the lawyers of the parties are presenting their arguments in the court. The court postponed the next hearing of the case till October 17.