Elon Musk Subpoenas Former Twitter Security Lead Turned Whistleblower In M&A Lawsuit

Elon Musk has subpoenaed Twitter Inc TWTR whistleblower, Peiter "Mudge" Zatko, seeking documents and communications on the company's spam and alleged security vulnerabilities, according to a court filing obtained by The New York Times on Monday.

What Happened: In a nearly 200-page document sent in July to regulatory agencies and the Justice Department, Mudge, a former Twitter security executive and well-known hacker, said that a number of security oversights by the social media business may have misled the board of directors, shareholders (including Musk) and the public.

According to the Times, both Musk and Mudge have accused the micro-blogging platform of fraud, but the claims are not identical. Musk alleges Twitter deceived his team about the number of spam bots on the platform and withheld other crucial information.

Mudge accuses Twitter of maintaining relations with authoritarian nations, permitting risky security flaws and a host of other allegations.
Read more: Twitter Will Show Verified Phone Numbers: Is This A Move To Please Elon Musk?

Why It Matters: Musk would need the court's approval to modify his countersuit against Twitter to accept Mudge’s arguments, according to The Times. But considering that the trial is only eight weeks away, the amendment to the countersuit may not be possible.

According to The Times, Musk's other course of action would be to sue Twitter on the basis of federal securities fraud, making use of the laws governing the sale of securities and providing him the option to renege on the arrangement.

In an earlier Delaware hearing, Musk's attorney Alex Spiro made a passing reference to the possibility that Musk would contend that Mudge's concerns ought to have been mentioned in Twitter's most recent annual report.

Last week, executives at Twitter responded to Mudge’s claims, saying a false narrative was being created, with some accusations being filed with no evidence and missing important context.

“This complaint that was filed yesterday is foundationally, technically and historically inaccurate,” Twitter CEO Parag Agrawal told employees Twitter’s weekly company meeting.