Twitter Whistleblower Reportedly Signed NDA As Part Of $7 Million Settlement

Topline

Twitter and its former security chief-turned-whistleblower Peiter Zatko reached a roughly $7 million settlement and signed a non-disclosure agreement in June, the Wall Street Journal reported Thursday, barring him from publicly speaking about his time at the company except through a few protected avenues, including the official whistleblower complaint that he filed two months ago.

Key Facts

The settlement came after a compensation dispute following Zatko’s termination from Twitter in January, according to the Journal, citing people familiar with the matter.

The NDA included a handful of exceptions for Zatko to openly discuss his Twitter tenure, the Journal reported, including via whistleblower complaints and testimony in Congress.

Zatko quickly took advantage of the exceptions, filing a complaint in July with the Department of Justice, the Securities and Exchange Commission and the Federal Trade Commission and agreeing to testify before the Senate last month.

Twitter did not immediately respond to Forbes’ request for comment.

Key Background

Zatko, also a famous hacker known as “Mudge,” worked from Twitter from 2020 to January 2022, shortly after Parag Agrawal became CEO. In the complaint, made public August 23, Zatko alleged the company misled investors and the federal government about security and privacy measures on the site and the platform’s number of false and spam accounts, or bots. He also said Agrawal told him to provide “false and misleading” information to the board, and Zatko alleged his refusal led to his termination. Twitter said Zatko’s firing was due to “ineffective leadership and poor performance.”

Tangent

A Delaware judge ruled Wednesday that information in Zatko’s complaint can be used by Elon Musk’s attorneys in an upcoming trial deciding whether Musk can back out of his $44 billion deal to buy Twitter. Musk’s justification for his withdrawal is largely centered on whether Twitter knowingly underreported the number of spam and bot accounts on the site, a charge Twitter has rejected. However, the judge denied Musk’s request to delay the trial to November, which Twitter investors proved bullish on, as Twitter shares are up more than 7% since Wednesday morning.

What To Watch For

Zatko will testify before the Senate regarding his claims against Twitter on Tuesday.

Further Reading

Twitter Agreed to Pay Whistleblower $7 Million in June Settlement (Wall Street Journal)

Musk Wins Request To Include Whistleblower Claims In Twitter Suit—But Judge Denies Delay (Forbes)

Twitter Whistleblower: Here’s What Former Security Chief Peiter Zatko Claims (Forbes)