Twitter Stock Dips After Whistleblower Reports “Egregious” Cybersecurity Lapses

deadline.com:

Twitter shares fell Tuesday after reports that its former security chief, disturbed by lax cybersecurity policies, filed a whistleblower complaint with federal agencies.Twitter responded that it had fired the executive, Pieter Zatko, in January for what it claims was poor performance, and that security and privacy are “company-wide priorities.”The news comes at a particularly sensitive time for Twitter in the midst of a legal battle with Elon Musk to force the billionaire Tesla founder to follow through on his agreement to buy the company.

Musk, who inked the $44 billion deal April deal and terminated it in July, has accused Twitter of equivocating on the number of fake, or spam, accounts on its platform.

Twitter sued him in Delaware Chancery Court and a trial is set for October.Twitter shares have rallied recently but are down 3.5% in midmorning trade at $41.Zatko’s complaint, first reported by CNN and The Washington Post, alleges “extreme, egregious deficiencies” in Twitter’s policies.

It said too many employees had access to sensitive information and oversight was inadequate. Zatko also alleges that some senior executives tried to cover up the issues.