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Elon Musk’s legal team has given another notice to terminate its $44 billion deal to buy Twitter, citing additional reasons.
The latest notice comes after Twitter’s former security chief alleged deficiencies in its security, privacy and content moderation systems earlier this month.
On July 8, Musk’s legal team initially filed a notice with the US Securities and Exchange Commission (SEC) to terminate the Twitter acquisition, and Musk’s legal team alleged that the company had not complied with contractual obligations.
Twitter and Elon Musk will go to trial on October 17 in Delaware to resolve Musk’s bid to cancel his company takeover unless they settle first.
“Allegations regarding certain facts, known to Twitter prior to and as of July 8, 2022, but undisclosed to the Musk Parties prior to and at that time, have since come to light that provide additional and distinct bases to terminate the Merger Agreement,” Mike Ringler, Musk’s legal representative from Skadden, Arps, Slate, Meagher & Flom, wrote in a letter to Twitter’s legal chief, Vijaya Gadde.
Ringler said in the letter that the latest termination notice is “not legally necessary” to end the merger deal, but is being delivered in case the July 8 filing is “determined to be invalid for any reason.”
The letter on behalf of Musk said the Zatko complaint “alleges far-reaching misconduct at Twitter—all of which was disclosed to Twitter’s directors and senior executives, including (CEO) Parag Agrawal—that is likely to have severe consequences for Twitter’s business.”
