US: Musk's lawyers seize on Twitter whistleblower revelations

They tried to convince the judge to order the company to hand over billions of 'data points'



Photo: Reuters
Photo: Reuters

By AFP

Published: Thu 25 Aug 2022, 7:29 AM

On Wednesday, Elon Musk's lawyers jumped on the revelations of a Twitter whistleblower, to try to force the platform to surrender vast amounts of information, in their fight to cancel the billionaire's buyout bid.

The Tesla boss' team told a US judge that the former Twitter security chief's allegations of major security gaps and problematic practices had bolstered their case, which has long struggled for momentum in court.

Musk has tried to back out of the $44 billion agreement by saying that Twitter misled him on the number of false/spam accounts, prompting strong denials, and a lawsuit from the social media firm.

Musk's attorney Alex Spiro repeatedly cited Twitter whistleblower Peiter Zatko, in a 90-minute hearing on what data the firm should be forced to hand over, ahead of their October trial.

"The way Mr. Zatko puts it, [the] management had no appetite to properly measure the prevalence of bot accounts," Spiro told Judge Kathaleen McCormick, in a court in the eastern state of Delaware.

Twitter won some early battles in the case, including a fast-track trial date, and its stock had risen, as analysts had predicted the platform would prevail over the mercurial billionaire.

In this regard, Zatko's whistleblower complaint to US authorities, which surfaced on Tuesday, has been seized upon by Musk's attorneys to try gaining some momentum in the case.

Spiro tried to convince the judge to order Twitter to hand over billions of "data points", including user phone numbers and locations, arguing that the information was needed to prove Twitter was dishonest about spam accounts.

Twitter lawyer Bradley Wilson countered that the company had not deceived anybody, and that Musk wanted a "do-over" regarding questions he should have asked before he made his unsolicited buyout offer earlier this year.

While Twitter has pointed out that Musk opted not to perform due diligence typically seen in merger deals, Spiro told the judge the billionaire had trusted the firm's filings with the Securities and Exchange Commission (SEC).

The market watchdog was one of the recipients of Zatko's complaint, which accuses Twitter of issuing untrue statements on account numbers, because "if accurate measurements ever became public, it would harm the image and valuation of the company".

It was not immediately clear whether the complaint, and its use by Musk's attorneys, would change the course of the case.

ALSO READ:

The judge has not yet issued a ruling on Musk's attorneys' data demands, and Zatko's impact could be clearer after his planned testimony before US lawmakers on September 13.

Twitter opposes handing over certain types of data for various reasons, including the potential to violate user privacy protected by law, its attorney Wilson argued.

"They want a do-over; they want to recount the spam … They want to get all of the information that the reviewers had, so that they can have their experts, I presume, do a count of their own and see if they can come up with a different number," he said, of Musk's team.

Even if Musk's experts came to a different conclusion about the number of spam accounts at Twitter, that would not amount to a breach significant enough to let him break the buyout contract, the Twitter attorneys argued.


More news from Americas