Elon Musk files new notice to cancel Twitter purchase, citing whistleblower

In another attempt to cancel his purchase of Twitter, Elon Musk has cited a complaint by whistleblower Peiter “Mudge” Zatko, former head of security for the company. Rick Jordan, CEO of Reachout Technology, joins CBS News to discuss Musk’s new strategy and how it will affect the future of Twitter.

≫>> elon musk has filed a new notice to cancel his purchase this time, due to a >> that’s right. the complaint, filed by former twitter security chief, alleges the social media giant mishandled data and put the company’s users at risk. twitter responded saying his filing is based solely on statements made by a third party that, as twitter has previously

Stated, are riddled with inconsistencies and lack >>> for more on all of this, let’s bring in rick jordan, ceo of reach out technology and an rick, great to see you. so can you, first of all, expand on these security risks that this whistleblower at twitter, you know, supposedly this goes back 10 years. a little over that. to a 2011 deal that twitter this is the

Crazy part, right? to not mislead customers over security principles for a period of 20 years. the ftc said they were barred but it makes no sense because what happens after 20 years, they can mislead people again? but when mr. sac was fired he found a lot of inconsistencies with the company and twitter was facing a $150 million fine for breaking these agreements they

Had with the ftc when he was hired back a couple of years ago by jack dorsey. everything from accessibility to user accounts to private data, attacks from the outside by what we call thread actors. >> so rick, we have heard a lot about this whole twitter deal. a lot of people are what is >> tuning out all of it. >> he tried to get out of the >>

It is like a soap opera. >> it is, yeah. with this latest turn, this twist now, do you think he is going to have better luck citing these issues mudge brings up about security? it is a good tactic for him. we are on money watch, right? if you look at the deal as a whole, it is not a bad deal for if everything is as twitter says that it is, $44 a share to buy this

Company out, or $44 billion is not a bad deal. it is a premium, it is a good deal for the shareholders, if everything is how it says it but we have seen the markets this is a good tactic to try to back out of the deal, or at least renegotiate the price. the filing they made again was like a redundant letter in case the first one filed on july 8 when mr. musk tried to back

Out just doesn’t hold water in so it is kind of a back-up we might see a back-up to a this is not the end of this. we’ll probably see this in >> so rick, if we put aside all of this back and forth between twitter shareholders and elon musk, what about the actual will any of this affect them? >> i hope so. and i say that in a scenario, because when mudge as

We call him was actually employed by twitter he found that 50% of the company internally still had access to private date to me, as a twitter user, that i wouldn’t want that. so i hope this is kind of he would be hire by software companies to fix bugs when they would delay, he would go public this is something he has been doing, a tactic he has been using for 30 years.

So i hope the biggest winners out of this are the twitter users like you and me. >> i kind of agree with you. i don’t want twitter employees

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Elon Musk files new notice to cancel Twitter purchase, citing whistleblower By CBS News