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Elon Musk allowed to amend counterclaims, incorporate new allegations against Twitter

Elon Musk's attorneys had argued to include allegations by Peiter Zatko - Twitter's former head of security, that the social media platform hid critical information from them as they pursued a deal to purchase it.

Vani Mehrotra Edited By: Vani Mehrotra @vani_mehrotra New Delhi Published on: September 08, 2022 8:09 IST
Elon Musk, Twitter, Elon Musk Twitter deal, Elon Musk Twitter dispute
Image Source : PTI US judge gives lifeline to Elon Musk, allows him to amend complaint against Twitter

Highlights

  • The lifeline to the Tesla chief was granted by a United States judge, who rejected delaying the laws
  • A whistleblower had filed a complaint about Twitter's security practices
  • Musk's attorneys said they should be allowed to incorporate new allegations and pushed for delay

Elon Musk was on Wednesday (local time) allowed to amend his complaint against Twitter. The lifeline to the Tesla chief was granted by a United States judge, who rejected delaying the lawsuit over the disintegration of the billionaire's deal to acquire the social media company.

His attorneys had requested to amend his counterclaims after a whistleblower filed a complaint about Twitter's security practices, a media report stated. 

In a mixed ruling, Kathaleen McCormick, the chancellor of the Delaware court, said Musk could add whistleblowing revelations from a Twitter ex-security chief that surfaced in August.

However, she denied his request to push back the litigation, saying prolonging the suit "would risk further harm to Twitter too great to justify."

Musk's attorneys argued to include allegations by Peiter Zatko - Twitter's former head of security, that the social media platform hid critical information from them as they pursued a deal to purchase it. 

They said they should be allowed to incorporate the new allegations and pushed to delay the trial, a request that was denied, the report said. 

Elon Musk's court battle with Twitter

Musk has been locked in a bitter legal battle with Twitter since announcing in July that he was pulling the plug on his USD 44 billion purchase of the company following a complex, volatile, months-long courtship.

The billionaire had cancelled the deal because he alleged he was misled by Twitter concerning the number of bot accounts on its platform.

Meanwhile, Twitter claimed it suffered financial losses as a result of Musk's withdrawal.

According to a Securities and Exchange Commission filing, the CEO of Tesla and SpaceX called off the buyout due to what he claimed were "false and misleading representations" made by Twitter during the agreement processes and the company's failure to provide information on "the prevalence of fake or spam accounts on Twitter's platform."

Twitter sued Musk to get him to complete the transaction, and Musk responded by filing his own lawsuit.

Earlier this month, Musk made a suggestion that the acquisition would still go through if the social media business provided details on fake and bot accounts.

Reports said the shareholder lawsuit was filed in late July and reportedly criticizes Musk for using "lame justifications" to cancel the deal.

The five-day trial is due to go ahead beginning October 17 in the Delaware court.

(With inputs from ANI)

Also Read | World's richest man Elon Musk's mother reveals why she sleeps in garage at son's Texas house

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