The disclosure of Mr. Zatko’s document changes the dynamics of Twitter’s lawsuit from what appeared to be an easy win for Twitter, Wedbush analyst Dan Ives said.
“For Musk, it’s almost like a kid waking up on Christmas morning and seeing this under the tree,” he said. “He gives the Musk camp a leg to stand on going into the court battle.”
The whistleblower complaint reinforces Musk’s claims on the spam bot issue and will bring more attention to it in Washington, Ives said.
“For the Twitter board, it is their worst nightmare that this happened at such a critical time.”
But Ives called the timing of the complaint, just weeks before the Delaware trial, “extremely interesting.”
Twitter called the complaint “a false narrative” about the company and its privacy and data security practices. He said it was “riddled with inconsistencies and inaccuracies, and lacks important context”.
The company said Zatko’s “accusations and opportunistic timing appear designed to attract attention and inflict harm on Twitter, its customers and its shareholders.”
However, some experts see the whistleblower disclosure as little more than good optics for Musk.
While it gets plenty of headlines, it probably won’t change what is likely to be a Twitter victory in its lawsuit demanding Musk go ahead with the purchase, said Erik Gordon, a University of Michigan law and business professor.