Musk wrote a third letter to the company in an attempt to end his acquisition. The reason for ending the deal was the multimillion dollar severance payment to Peiter Zatko, a former security chief and whistle blower. The letter was included in a filing with the SEC on Friday, which you can read at the bottom of this article.
Zatko made headlines last month when he accused the social network of having poor security practices, as well as misleading investors about the number of bots on the service. Musk subpoenaed Zatko to testify in the lawsuit because of the accusations. Zatko was going to be deposed.
This is despite the fact that he was given access to the "firehose" service.
The Wall Street Journal reported on Thursday that the company had agreed to pay Zatko $7 million before he left in order to compensate him for lost compensation. It is one of the reasons why the deal to purchase the social media company shouldn't happen. The purchase agreement doesn't allow for any out-of-the-ordinary payouts. The settlement isn't particularly strange, but it seems like Musk doesn't agree with it. Musk didn't know about the separation agreement until it was filed with the court, according to the letter.
The matter of whether or not Musk can end the deal is in the hands of a Delaware court. Musk will be able to use Zatko's allegations to support his case, and there will be a limited discovery on documents related to the whistle blower's report. The second notice was filed in August.
October 17th is when the trial is going to start. A request for comment was not immediately responded to by the social networking site.