elon musk and jack dorsey

A new chapter in the Twitter buyout seems to be unfolding recently as Elon Musk is reportedly subpoenaing documents from the founder and former Chief Executive Officer of the social media platform Jack Dorsey to strengthen his legal case against the firm.

According to a court filing that was made public yesterday, the head of Tesla (TSLA) asked Jack Dorsey to provided documentation that could reveal more information about how Twitter handled bots and spam accounts.

Musk’s lawyers specifically requested documents that could be “reflecting, referring to, or relating to the impact or effect of false or spam accounts on Twitter’s business and operations” going back to 2019.

This may include e-mail communications, previous reports that indicated the actual number of potentially fraudulent accounts, and other similar documents. Musk’s legal team can use the information contained in these reports to strengthen their case as they allege that Twitter made “misleading and false representations” of their user data.

Dorsey Publicly Endorsed Musk’s Attempt to Buy Twitter

Dorsey has endorsed Musk’s attempt to acquire Twitter as he believes the platform can do better by opting out of an advertising-focused model. Musk reportedly thinks similarly as he has advocated for a subscription-based model that may also generate money by allowing users to make payments to each other and other similar features.

“Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness”, Dorsey tweeted back in April in regards to Musk’s proposed buyout.

Other subpoenas have been sent to ex-employees of the social media platform including Kayvon Beykpour and Bruce Falck who served as head of consumer product and head of product revenue respectively, possibly aiming to obtain similar documents from the two that could strengthen Musk’s defense and claims against the company.

Also read: Elon Musk Writers About Life-Enhancing Future for China’s Top Internet Censor

In April this year, Musk proposed to buy Twitter (TWTR) for $44 billion. However, he later on questioned the accuracy of the firm’s operating reports by stating that they failed to disclose how many of the platform’s monthly active users (MAUs) could be considered spam accounts.

Ultimately, Musk decided to pull out of the deal and Twitter responded by suing him for contractual breach later in July.

“Having mounted a public spectacle to put Twitter in play, and having proposed and then signed a seller-friendly merger agreement, Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away”, Twitter stated in the lawsuit.

Twitter’s Ex-Head of Security Deems The Platform a Threat to National Security

Just this morning, reports are surfacing that Twitter may have mislead regulators about how it dealt with spam accounts. According to the social media company’s former security chief, Peiter Zatko, Twitter does not have enough resources to fully deal with this threat.

Zatko comments were revealed in documents sent to the US Congress and several federal agencies that depicted Twitter as a reckless company that had little to no control over the extent to which employees could access the platform’s central controls and sensitive information from users.

Twitter responded to a request for comments from CNN by stating that Zatko was fired for “poor performance and ineffective leadership”. According to the spokesperson that responded to the questions, Zatko’s allegations are “riddled with inconsistencies and inaccuracies” and they also lack appropriate context.

If Zatko’s allegations are proven accurate, they would strengthen Elon Musk’s case against the company and may allow him to win this lawsuit as there would be further evidence that the firm has misstated the impact that these spam accounts have in the business.

Twitter stock is dropping nearly 4% this morning in pre-market trading at $41.3 per share on the back of these developments.

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