Elon Musk launches accusations of fraud against Twitter

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Tesla Inc (NASDAQ: TSLA ) CEO Elon Musk has launched more serious allegations against Twitter Inc (NYSE:NYSE: TWTR ), which could lead to a legal battle between the two sides over the billionaire businessman’s attempt to back down. of a $44 billion deal to acquire the social media company.

What you should know Musk modified his earlier countersuit against Twitter with allegations made by the company’s former security chief, who became a whistleblower and recently testified before Congress, a court filing on Thursday found, according to Reuters.

In addition, he alleged that Twitter concealed its breach of a 2011 agreement with the Federal Trade Commission regarding user data, as reported.

“It goes without saying that the most recent revelations make it undeniably clear that the Musk parties have every right to withdraw from the Merger Agreement,” the amended filing read, according to Reuters.

Why It Matters Twitter whistleblower Peiter “Mudge” Zeitko told the Senate Wednesday that during his last week on Twitter, the Federal Bureau of Investigation had tipped off the company of a Chinese government agent on its payroll.

Zeitko’s statement followed a similar allegation made earlier by him, raising concerns about covert foreign interference in the microblogging site.

However, analysts are divided on the impact Zeitko’s latest claims will have on the trial between Musk and Twitter next month, as a result of Twitter shareholders’ approval of the deal to acquire the company by the leader. of Tesla.

Musk has also demanded that the former Twitter product chief testify about spam accounts that are central to his legal fight, Bloomberg reported.

The price move Shares of Tesla closed almost 0.4% higher at $303.75 on Thursday, while shares of Twitter closed almost 0.6% higher at $42.14 before falling a 0.7% in the extended trading session.

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