Elon Musk Accuses Twitter of Fraud for Concealing Serious Security Flaws in Amended Lawsuit: Report

Elon Musk has amended his lawsuit against Twitter by adopting recent allegations by whistleblower Peiter Zatko.

Written by Nithya P Nair, Edited by David Delima | Updated: 16 September 2022 11:47 IST

Elon Musk Accuses Twitter of Fraud for Concealing Serious Security Flaws in Amended Lawsuit: Report

Twitter's former head of security Peiter "Mudge" Zatko was reportedly fired for poor performance

Highlights

Twitter has sued Elon Musk as it seeks to complete the takeover deal
An October 17 trial is scheduled in the Delaware Chancery court
Twitter's former security chief testified before the US Senate this week

Elon Musk has reportedly accused Twitter of concealing serious flaws in the social media company's data security. The billionaire who is sticking to his decision to terminate the $44 billion (roughly Rs. 3,49,400 crore) takeover deal, also alleged that Twitter hid from him that it was not complying with a 2011 agreement with the Federal Trade Commission (FTC) regarding user data. Following the claims made by a Twitter whistleblower, Musk amended his previously filed lawsuit. The whistleblower also alleged that the influential social media platform had allowed access to agents from foreign governments.

As per a report by Reuters, a court filing has revealed that Elon Musk has accused Twitter of fraud by concealing faults in the company's data security, which the entrepreneur said should allow him to end his $44 billion deal for the company. The Tesla CEO has also reportedly amended the lawsuit filed earlier by adopting allegations by the Twitter whistleblower during his testimony before the US Senate Committee.

The whistleblower and former Twitter security chief Peiter "Mudge" Zatko, previously claimed that Twitter knowingly allowed the Indian and Chinese governments to place its agents on the company's payroll.

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According to the report, Musk alleged that Twitter was not complying with a 2011 agreement with the FTC regarding user data. The billionaire reportedly said that for numerous independently sufficient reasons he has full right to walk away from his offer to buy the micro-blogging platform for the earlier agreed $44 billion (roughly Rs. 3,49,400 crore).

In response to Musk's allegations, Twitter reportedly said it conducted an internal investigation of Zatko's allegations and determined they lacked merit. The company has said Zatko was fired for poor performance.

Both sides are headed toward a legal battle in a Delaware court on October 17 and Musk has been allowed to use the whistleblower's allegations during the upcoming trial, according to reports.

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Further reading: Twitter, Elon Musk, Tesla, Peiter Mudge Zatko, FTC

Nithya P Nair

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Nithya P Nair is a journalist with more than five years of experience in digital journalism. She specialises in business and technology beats. A foodie at heart, Nithya loves exploring new places (read cuisines) and sneaking in Malayalam movie dialogues to spice up conversations. More