Skip to main content

Market Overview

Twitter Wants To Know If Elon Musk, Whistleblower 'Mudge' Had Previous Links As Court Trial Draws Closer

Share:
Twitter Wants To Know If Elon Musk, Whistleblower 'Mudge' Had Previous Links As Court Trial Draws Closer

Delaware Chancery Court Judge Kathaleen McCormick, who is overseeing the lawsuit between Twitter, Inc. (NYSE: TWTR) and Tesla, Inc. (NASDAQ: TSLA) CEO Elon Musk on Thursday ruled that the billionaire can amend his countersuit to include the $7.8 million severance payment the social media company paid to whistleblower Peiter Zatko.

This is considered a small victory for Musk, as Twitter went ahead and made the payment on June 28, violating the terms of the contract it signed with Musk regarding his proposed takeover.

As part of the lawsuit to enforce Musk’s $44 billion deal, Twitter has asked him and his lawyers to provide any communication between them and Zatko from Dec. 1, 2021, to Aug. 22, 2022. The judge has made this a precondition for allowing Musk’s request for amending his counterclaim against Twitter.

See also: Elon Musk To Answer Twitter's Questions Under Oath In Court Next Week

The billionaire sent a third notice of termination to Twitter earlier this month, citing the impropriety in Twitter’s payment to Zatko.

Zatko, known as "Mudge" in cybersecurity circles, previously served as Twitter’s security chief and was terminated from service in January. In August, a whistleblower complaint filed by him with the SEC and other federal agencies was disclosed, wherein he alleged serious security problems at Twitter that pose a threat to user data. He testified before Congress last week.

The Twitter-Musk lawsuit will go to a five-day trial, beginning on Oct. 17.

Price Action: Twitter closed Thursday’s session at $41.40, up 0.32%, according to Benzinga Pro data.

 

Related Articles (TWTR)

View Comments and Join the Discussion!

Posted-In: Elon MuskM&A News Social Media Legal Top Stories Tech General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com