The settlement provides Elon Musk’s team another reason to abandon the $44 billion website.
In Elon Musk’s countersuit against the company, he has been given permission to use accusations made by Twitter whistleblower Peiter Zatko.
Musk plans to cite Zatko’s charges and the fact that he was able to back out of Twitter’s $44 billion acquisition contract as evidence.
Musk’s lawyers reportedly issued Twitter a letter claiming the company’s June severance payment to Zatko breached a sales agreement condition.
In the letter that was submitted to the SEC website, the attorneys for Elon Musk referred to Section 6.1(e) of the merger agreement,
Twitter committed not to “grant severance or termination benefits to any Company Service Provider other than in the regular course of business”
Despite the fact that the purchase agreement between Musk and Twitter was finalized in April, Zatko did not get his severance money until the month of June.
According to the letter sent by the lawyers, the business did not inform Musk of the transaction or get his agreement before to making the payment.
Musk most likely found out about the settlement for the first time on September 3rd, when Twitter made the information public in a court filing regarding the agreement.
In light of this settlement, Musk’s team argues that there is now even more cause to terminate the parties’ acquisition agreement and that this should take place immediately.
According to The Post, Twitter must prove that the severance package it granted a former employee was not excessive.