Twitter Hid Security Issues to Boost Stock, Investor’s Suit Says

According to an investor's lawsuit, executives at the popular social-media platform should be held accountable for concealing operational problems and firing a whistle-blower who tried to address the issues.

William Baker, a shareholder of the platform, said in a federal suit that Jack Dorsey and other managers made false statements to boost the platform's stock price.

The whistle-blower Peiter Zatko was discouraged from providing a full accounting of Twitter's security problems to the company's board of directors. The company had a head of computer security.

The suit may be the first to rely on the whistle-blower's accusations as grounds for investors to hold the executives responsible for their handling of Zatko's concerns It is one of the reasons that billionaire Musk canceled his $44 billion takeover of the company. 17 over whether the world's richest person must go through with his $54.20 a share deal

Baker's suit was not commented on by officials from the social networking site.

The suit seeks class-action status for all shareholders who owned the stock over the course of two years. The disclosure last month of Zatko's allegations sent Twitter shares down as much as 7%.

The case is in the central district of California.