Musk’s legal team claims that the allegations, if true, represent breaches of Twitter’s side of the acquisition bargain and should allow him to exit the deal. The letter claims that Twitter’s alleged misrepresentations to its board and regulators — and investigations that could result — has or could constitute a “material adverse effect” that would allow him to walk away, per the original contract.
Musk’s letter, Twitter wrote, “is based solely on statements made by a third party that, as Twitter has previously stated, are riddled with inconsistencies and inaccuracies and lack important context.” The company said it “has not suffered and is not likely to suffer a Company Material Adverse Effect” and added that it still intends to close the deal at the agreed upon price and terms. Twitter responded to a request for comment from CNN pointing to its letter to Musk.
“Mr. Zatko will comply with his legal obligations of that subpoena and his appearance at the deposition is involuntary,” Zatko’s attorneys, Debra Katz and Alexis Ronickher, said in a statement Monday. “He did not make his whistleblower disclosures to the appropriate governmental bodies to benefit Musk or to harm Twitter, but rather to protect the American public and Twitter shareholders.”
Zatko is also expected to testify at a Senate hearing on September 13, something Musk’s letter also points to.
