Twitter Plummets, Musk Says Deal Could Have Five More Breaches of Agreement

Twitter (NYSE:TWTR) shares fell nearly 2.5% after Tesla (NASDAQ:TSLA) CEO Elon Musk filed a supplemental notice of termination of the Merger Agreement with the social media company.

The 13D filing, made this morning, amends Schedule 13D originally filed by Elon Musk with the Securities and Exchange Commission (SEC) on April 5, 2022. The letter contains additional grounds for termination of the merger agreement. A new letter sent to Twitter includes additional grounds for merger termination that "differ from the grounds set forth in the Reporting Person's letter to Twitter dated July 8, 2022, terminating the Merger Agreement on that date." Musk's legal team says the social media company may have breached the agreement in five other areas:

• Violation of a consent agreement with the FTC;
• SEC filings containing untrue statements;
• Failure to disclose the conduct of CEO Parag Agrawal;
• Litigation arising from whistleblower complaints; and
• Intellectual property violations.

Today's filing comes just one day after former Twitter security chief Peiter "Mudge" Zatko, who last week accused Twitter of poor security practices, was subpoenaed by Elon Musk's lawyers. Zatko is scheduled to testify on September 09. On the other hand, Tesla shares rose 2.5% on the new letter sent to Twitter. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!