Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo. Reuters
Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo. Reuters
Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo. Reuters
Elon Musk's twitter account is seen on a smartphone in front of the Twitter logo. Reuters

Elon Musk and Twitter subpoena whistleblower as $44bn buyout dispute drags on


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Lawyers for both Elon Musk and Twitter subpoenaed a whistleblower who said the social media platform’s executives did not know or care to find out how many accounts were spam or robot accounts as the billionaire seeks to cancel a $44 billion buyout of the company.

Peiter Zatko, Twitter’s former head of security, said in a whistleblower complaint last week that the company had “egregious deficiencies” in its defences against hackers and lacked concern for privacy issues.

Mr Zatko also said he raised his concerns about the number of bots in the system and claimed those apprehensions were ignored the company's executives.

Mr Musk is seeking evidence from Mr Zatko to bolster his legal argument so that he can walk away from the Twitter deal over the bot issue.

Twitter sued Mr Musk in July to force him to complete his proposed acquisition. Since then, more than 100 people, banks, funds and other companies have been subpoenaed in the Delaware suit, with a trial scheduled to begin on October 17.

The billionaire filed a court document Monday saying he had subpoenaed Mr Zatko, followed later in the day with a similar filing by Twitter.

Mr Zatko is also scheduled to give evidence before a US Senate committee on September 13 about his allegations.

A Twitter representative declined to comment on Monday. Last week, the company called Mr Zatko’s complaint “a false narrative about Twitter and our privacy and data security practices that is riddled with inconsistencies and inaccuracies and lacks important context”.

Whistleblower Aid, the group representing Mr Zatko, did not immediately respond to a request for comment.

The subpoenas are aimed at getting Mr Zatko to hand over documents about his bot concerns and anything else he knows about Twitter’s metrics for evaluating customers that can be “monetised” for advertising purposes.

The information demand also focuses on what Mr Zatko knows about Twitter’s securities filings, particularly its statements about bots making up about 5 per cent of its customer base, according to court documents.

Mr Musk’s lawyers said last week they had already subpoenaed Mr Zatko. However, no record of the information demand was on the court docket until Monday.

In the complaint, Mr Zatko said Twitter’s “Integrity Team” was reluctant to dig deeply into how many bot accounts were included in the platform’s customer base.

That left the former security executive thinking “the company had no appetite to properly measure the prevalence of bots, in part because if the true number became public, it could harm the company’s value and image”.

Elon Musk's legal team is demanding to hear from a whistleblowing former Twitter executive who could help bolster Musk's case for backing out of a $44bn deal to buy Twitter. AP
Elon Musk's legal team is demanding to hear from a whistleblowing former Twitter executive who could help bolster Musk's case for backing out of a $44bn deal to buy Twitter. AP

Mr Musk has argued that Twitter’s regulatory disclosures putting spam and bot accounts at no more than 5 per cent of its customer base were misleading.

The Tesla chief executive has made public some of his analysis of the issue, which holds that a full third of Twitter’s more than 230 million users may fall into the bot category.

If that is the case, Mr Musk contends it creates a material adverse event that justifies the move to cancel his $54.20-a-share deal under Delaware law.

The state is the corporate home of more than half of US public companies, including Twitter and Tesla, along with more than 60 per cent of Fortune 500 businesses. Its chancery court judges are business law experts who hear cases on a fast-track basis.

Also on Monday, depositions were set for Patrick O’Malley and Kristen Salen, two advisers of Mr Musk on the Twitter deal, for later this week.

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

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Favourite book: Homegoing by Yaa Gyasi

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Children: Stepdaughter Tyler 27, daughter Quito 22 and son Dali 19

What is Reform?

Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.

It was founded in 2018 and originally called the Brexit Party.

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Updated: August 30, 2022, 8:01 AM`