Twitter Falls as Musk Cites Five More Areas Where Agreement May Have Been Breached
2022.08.30 14:05
Twitter (TWTR) Falls as Musk Cites Five More Areas Where Agreement May Have Been Breached
By Senad Karaahmetovic
Shares of Twitter (NYSE:TWTR) are down about 2.5% after Tesla (NASDAQ:TSLA) CEO Elon Musk sent an additional notice of termination of the Merger Agreement with the social media company.
This morning’s 13D filing amends the Schedule 13D initially filed by Elon Musk with the Securities and Exchange Commission (SEC) on April 5, 2022. The letter includes additional reasons for the termination of the merger agreement.
A new letter to Twitter includes additional bases for the merger termination, which are “distinct from those bases set forth in the Reporting Person’s July 8, 2022 letter to Twitter terminating their Merger Agreement on that date,” is added in the filing.
Musk’s legal team says that the social media company may have breached the deal in five more areas, namely:
- A violation of a consent decree with the FTC;
- SEC filings contained untrue statements;
- A failure to disclose conduct from CEO Parag Agrawal;
- Lawsuits from the whistle-blower complaint; and
- Intellectual property infringements.
Today’s filing comes just a day after Peiter “Mudge” Zatko, the former Twitter security chief who came out last week accusing Twitter of weak security practices, was subpoenaed by Elon Musk’s lawyers.
Zatko is scheduled to be deposed on September 09.
On the other hand, Tesla shares are up 2.5% on the new letter sent to Twitter.
