Twitter stock pre-market: Tesla boss Elon Musk faces Twitter with more breach of contract |  09/12/22

Twitter stock pre-market: Tesla boss Elon Musk faces Twitter with more breach of contract | 09/12/22


He was not informed about the one million severance payment by the security chief.

Former Twitter security chief Peiter Zatko and his lawyers were awarded $7.75 million by Twitter. Musk’s lawyers accuse the company that under the purchase agreement, it should have asked Musk for approval of this extraordinary expense.

Musk announced a $44 billion takeover of Twitter in April, and the two sides signed an agreement that same month. In early July, however, Musk abandoned the plan due to alleged “false and misleading” information from the text messaging service.

The background is the number of spam or fake accounts on Twitter. Musk accuses Twitter of overestimating the actual number of users. Twitter disputes Musk’s claims and insists on completion of the acquisition.

Zatko has a central role in the case. In a report to the US Securities and Exchange Commission, the US Department of Justice and the US Competition Authority, Twitter’s former security chief spoke of “serious and shocking vulnerabilities” in the online service. He also accuses his former employer of misrepresenting the number of users. Twitter denies the claims.

The actual trial of the takeover dispute between Musk and Twitter begins on October 17 in a special court in the state of Delaware on the east coast of the United States. Musk is the richest man in the world with a fortune of more than 270 billion dollars.

Shares of Twitter fell 0.78 percent to $41.86 in premarket trading on the NYSE Monday.

San Francisco (awp/sda/afp)