By Reuters | Updated: 12 July 2022
Twitter fired back at Elon Musk on Monday, accusing the world’s richest person of “knowingly” breaching an agreement to buy the social media firm, days after the Tesla chief sought to back out of the $44 billion (roughly Rs. 3,37,465 crore) deal.
In a letter sent to Musk, dated Sunday and filed with regulators on Monday, Twitter said it had not breached its obligations under the merger agreement as indicated by Musk on Friday for looking to end the deal.
“Twitter demands that Mr. Musk and the other Musk Parties comply with their obligations under the Agreement, including their obligations to use their respective reasonable best efforts to consummate and make effective the transactions contemplated by the Agreement,” the letter said.
The company has planned to sue Musk to force him to complete the deal, a threat he laughed off on Monday, when he sent a series of tweets joking about Twitter and its threat to enforce the agreement in court. Twitter is planning to file a lawsuit early this week in Delaware, people familiar with the matter told Reuters.
Twitter said in the letter that the merger agreement remained in place, adding it would take steps to close the deal.
Twitter’s shares ended down 11.3 percent at $32.65 (roughly Rs. 2,500), a 40 percent discount to Musk’s $54.20 (roughly Rs. 4,300) bid and the biggest daily percentage drop in more than 14 months. They rebounded less than 1 percent in extended trading.
Tesla’s shares closed down almost 7 percent.
Traders short selling Twitter’s tumbling stock made $148 million (roughly Rs. 1,178 crore) in mark-to-market profits on Monday, while short bets against Tesla resulted in $1.3 billion (roughly Rs. 10,352 crore) in mark-to-market profits, according to S3 Partners.
“Twitter’s board must contemplate the potential harm to its employee and shareholder base of any additional internal data exposed in litigation,” Benchmark analyst Mark Zgutowicz said.
Francis Pileggi, a corporate litigator with Lewis Brisbois in Delaware, said Musk could put the social media giant’s so-called “bots” front and center in future litigation if he defends against Twitter’s lawsuit by claiming the company misrepresented the number of fake accounts.
“I’d be surprised if he’s prohibited from getting that information,” Pileggi said.
Pileggi said if the number of fake accounts is many times higher than the 5 percent estimated by Twitter, it could lead to negotiations for a reduced price for the social media platform.
Legal experts say the 16-year-old social media company has a strong legal case against Musk, but could opt for a renegotiation or settlement instead of a long court fight.
“We believe that Elon Musk’s intentions to terminate the merger are more based on the recent market sell-off than … Twitter’s ‘failure’ to comply with his requests,” Jefferies analyst Brent Thill wrote in a note.
“In the absence of a deal, we would not be surprised to see the stock find a floor at $23.5 (roughly Rs. 1,800).”
© Thomson Reuters 2022
Elon Musk to Be Questioned Under Oath in Twitter Lawsuit on September 26: All Details
By Reuters | Updated: 21 September 2022
Twitter Inc will question Elon Musk under oath in Delaware next week as part of the litigation in the billionaire’s bid to walk away from his $44 billion (roughly Rs. 3,51,320 crore) deal for the social media company.
A Tuesday filing in Delaware’s Court of Chancery said Musk’s deposition is scheduled for September 26-27 and may stretch into Sept. 28 if necessary.
The two sides are locked in an increasingly acrimonious legal battle that has swept up of some of the biggest names in Silicon Valley and Wall Street.
Subpoenas have being issued to billionaire Larry Ellison, the co-founder of Oracle, Intel’s former Chief Executive Officer Robert Swan and Twitter co-founder Jack Dorsey, who is currently chief executive of Block Inc.
A five-day trial is scheduled to begin on October 17 in Wilmington, Delaware.
Each side has accused the other of breaking the April takeover agreement. Twitter wants a judge to order Musk, who is chief executive of Tesla Inc and the world’s richest person, to buy the company as agreed for $54.20 (roughly Rs. 4,300) per share.
Shares in San Francisco-based company were down slightly in early Tuesday trading at $41.54 (roughly Rs. 3,300).
On Tuesday, Bloomberg reported that court filings had revealed that Twitter co-founder Jack Dorsey would be deposed in the company’s lawsuit that is set to begin next month. Ever since Musk and Twitter reached an agreement, Dorsey has been supportive of the takeover deal for the microblogging service. He was previously subpoenaed by the Tesla CEO in August, and was to be questioned under oath by Twitter and Musk on Tuesday, according to the report.
Musk has reportedly accused the firm of concealing serious flaws in its data security. He has also alleged that Twitter hid from him that it was not complying with a 2011 agreement with the Federal Trade Commission (FTC) regarding user data, based on claims made by whistleblower and former security chief Peiter Zatko, who has also alleged that Twitter had allowed access to agents from foreign governments.
Twitter India Summoned to Appear Before DCW on September 26 Over Objectionable Content
By ANI | Updated: 20 September 2022
The Delhi Commission for Women (DCW) has summoned Twitter India and Delhi Police officials over alleged videos of child pornography and rape being shared on the social media platform. DCW took suo moto cognizance of several alleged tweets on the social media platform Twitter displaying child pornography.
“Videos of child pornography were shared on Twitter and were sold for Rs. 20. Twitter is yet to delete them and report it further. We have summoned the head of Twitter India and have sought a report. We have also summoned Delhi Police and have sought immediate action,” DCW chief Swati Maliwal told ANI.
DCW said these tweets are openly depicting videos and photographs of sexual acts involving children.
In its letter to Twitter India and Delhi Police, the Commission said, “Some of the twitter accounts engaging in these criminal acts appear to be running a racket wherein they seek money for providing pornographic and rape videos of children and women from other users of the social media platform,” said DCW.
The Commission claimed there appears to be hundreds of such objectionable videos on the social media platform which are openly displaying child pornography and rape videos of women and children.
DCW said it is deeply distressing that such illegal acts involving sexual abuse of children and young women are being publicised openly through the social media platform Twitter.
The Commission said it wishes to ascertain the steps being taken by Twitter to prevent such “filthy and outrightly criminal acts” being propagated through its medium as well as the systems in place in the platform to immediately report the same to law enforcement agencies.
“Now therefore you are hereby summoned to appear before the Commission for the purpose aforementioned on September 26. If you fail to comply with this order without lawful excuse, you will be subjected to the consequences of non-attendance as provided in law,” stated DCW.
Dutch town takes Twitter to court to remove conspiracy theories
By: Reuters, September 17, 2022
THE HAGUE, Sept 16 (Reuters) – A small Dutch town took Twitter (TWTR.N) to court on Friday to demand the social media giant takes down all messages relating to a supposed ring of satan-worshipping paedophiles that were alleged to have been active in the town in the 1980s.
Bodegraven-Reeuwijk, a town of around 35,000 inhabitants in the middle of the Netherlands, has been the focus of conspiracy theories on social media since 2020, when three men started spreading unfounded stories about the abuse and murder of children they said took place in the town in the 1980s.
The main instigator of the stories said he had childhood memories of witnessing the abuse by a group of people in Bodegraven.
The stories caused much unrest in Bodegraven, as scores of followers of the men’s tweets flocked to the local graveyard to lay flowers and written messages at the graves of seemingly random dead children, who they claimed were victims of the satanic ring.
Twitter’s lawyer Jens van den Brink declined to comment before the hearing at The Hague District Court on Friday.
Last year the same court ordered the men to immediately remove all their tweets, threats and other online content relating to the story and to make sure that none of it could ever emerge again.
But despite their conviction, stories about Bodegraven still circulate on social media as others have continued to echo their story, leading the town to take the matter up with Twitter itself.
“If conspiracy theorists don’t remove their messages, then the platforms involved need to act,” the town of Bodegraven’s lawyer Cees van de Zanden was quoted as saying by Dutch newspaper De Volkskrant on Friday.
Van de Zanden said that in July the town requested Twitter to actively find and remove all messages relating to the Bodegraven story, not only those posted by the three convicted men, but had so far not received an answer from the U.S. company.
The men behind the Bodegraven story are currently all in jail, as they have been convicted in other court cases for incitement and making death threats to a range of people including Prime Minister Mark Rutte and former health minister Hugo de Jonge.
Twitter agreed to pay whistleblower $7 million in June settlement – WSJ
By: Reuters, September 9, 2022
Sept 8 (Reuters) – Twitter Inc (TWTR.N) agreed in June to pay about $7 million to the whistleblower whose allegations will be part of Elon Musk’s case against the company, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The whistleblower, Peiter “Mudge” Zatko, who was fired by Twitter in January and was the company’s security head, last month accused the social media firm of falsely claiming it had a solid security plan and making misleading statements about its defenses against hackers and spam accounts.
Zatko will meet the U.S. Senate Judiciary committee on Sept. 13 to discuss the allegations.
The settlement was completed days before Zatko filed his whistleblower complaint in July, according to the WSJ report. (https://on.wsj.com/3L3uRb1)
As part of the settlement, Zatko agreed to a nondisclosure agreement that forbids him from speaking publicly about his time at Twitter or disparaging the company, the WSJ said.
The confidential June settlement was related to Zatko’s lost compensation and followed monthslong mediation over tens of millions of dollars in potential pay, the WSJ reported.
Twitter did not immediately respond to a Reuters request for comment.
Musk is engaged in a head-on legal battle with Twitter over his offer to buy the company for $44 billion after he changed course to drop the deal saying the social media firm had misled him about the number of bots and fake accounts on the site.
Musk can use Twitter whistleblower but not delay case: Judge
By: Associated Press, September 8, 2022
Elon Musk will be able to include new evidence from a Twitter whistleblower as he fights to get out of his $44 billion deal to buy the social media company, but Musk won’t be able to delay a high-stakes October trial over the dispute, a judge ruled Wednesday.
Chancellor Kathaleen St. Jude McCormick, the head judge of Delaware’s Court of Chancery, denied Musk’s request to delay the trial by four weeks. But she allowed the billionaire Tesla CEO to add evidence related to whistleblower allegations by former Twitter security chief Peiter Zatko, who is scheduled to testify to Congress next week about the company’s poor cybersecurity practices.
Twitter has sued Musk, asking the Delaware court to force him to go through with the deal he made in April to buy the company. Musk has countersued and a trial is set to start the week of Oct. 17. Musk’s legal team has argued that the allegations made by Zatko to U.S. officials may help bolster Musk’s claims that Twitter misled him and the public about the company’s problem with fake and “spam” accounts.
Zatko, a well-known cybersecurity expert known by his hacker handle “ Mudge,” said he was fired in January after raising flags about Twitter’s negligence in protecting the security and privacy of its users.
The judge’s ruling followed an hours-long hearing Tuesday at which attorneys for Musk and Twitter argued with each other about the merits of Zatko’s claims and the pace at which both sides are producing evidence ahead of the trial.
Twitter’s attorneys sought to downplay the relevance of Zatko’s allegations to the merger dispute, arguing that an initial 27-page complaint he sent to Twitter and a later retaliation clam made no mention of the “spam bot” issues that Musk has given as a reason to terminate the deal. Zatko “never said a word about spam or bots” until his July whistleblower complaint, said Twitter attorney William Savitt.
Twitter has argued for weeks that Musk’s stated reasons for backing out were just a cover for buyer’s remorse after agreeing to pay 38% above Twitter’s stock price shortly before the stock market stumbled and shares of the electric-car maker Tesla, where most of Musk’s personal wealth resides, lost more than $100 billion of their value.
McCormick, the judge, said Wednesday the newly published whistleblower complaint gave Musk’s team grounds to amend its countersuit but she declined to weigh in on the details.
“I am reticent to say more concerning the merits of the counterclaims at this posture before they have been fully litigated,” she wrote. “The world will have to wait for the post-trial decision.”
McCormick, however, sided with Twitter’s concerns that delaying the trial would make it harder for the company to get back to business. “I am convinced that even four weeks’ delay would risk further harm to Twitter too great to justify,” she wrote.
Ireland fines Instagram a record $400 mln over children’s data
By Reuters, September 5, 2022
DUBLIN, Sept 5 (Reuters) – Ireland’s data privacy regulator has agreed to levy a record fine of 405 million euros ($402 million) against social network Instagram following an investigation into its handling of children’s data, a spokesperson for the watchdog said.
Instagram plans to appeal against the fine, a spokesperson for parent Meta Platforms Inc said in an emailed statement.
The investigation, which started in 2020, focused on child users between the ages of 13 and 17 who were allowed to operate business accounts, which facilitated the publication of the user’s phone number and/or email address.
“We adopted our final decision last Friday and it does contain a fine of 405 million euro,” said the spokesperson for Ireland’s Data Protection Commissioner (DPC), the lead regulator of Instagram’s parent company Meta Platforms Inc.
Full details of the decision will be published next week, he said.
Instagram updated its settings over a year ago and has since released new features to keep teens safe and their information private, the Meta spokesperson said.
The spokesperson said Instagram disagrees with how the fine was calculated and is carefully reviewing the decision.
The DPC regulates Facebook, Apple, Google and other technology giants due to the location of their EU headquarters in Ireland. It has opened over a dozen investigations into Meta companies, including Facebook and WhatsApp.
WhatsApp was last year fined a record 225 million euros for failing to conform with EU data rules in 2018.
The Irish regulator completed a draft ruling in the Instagram investigation in December and shared it with other European Union regulators under the bloc’s “one stop shop” system of regulating large multinationals.
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