Former Twitter security head Alan Rosa has taken legal action against Elon Musk and the now-rebranded social media platform, claiming that his termination was unjust and a result of cost-cutting strategies that risked regulatory compliance.
What Happened: Rosa has filed a lawsuit against Musk, Steve Davis, a company adviser, and Twitter (now called X), alleging that his opposition to the tech billionaire’s cost-cutting measures, which threatened regulatory compliance, led to his firing, reported The Verge.
The lawsuit claims that Davis was hired to “begin cutting Twitter’s products and services that supported and complied with the Twitter FTC Consent Decree.”
Rosa further claimed that he was asked to halve the physical security budget within hours, which would have led to violations of court orders. The former security head maintained that the refusal to do so resulted in his access being revoked and his employment being terminated without notice or reason.
It’s worth noting that this lawsuit comes after a series of mass layoffs spearheaded by Musk, which have already led to legal action. Rosa’s lawsuit draws parallels with the one preceding it, citing it as a precedent.
Why It Matters: This lawsuit comes after it was reported that Twitter’s value has dramatically declined under Musk’s leadership. The company’s valuation stood at $19 billion in October, less than half the $44 billion purchase price paid by Musk.
According to some insiders, this decline is a result of Musk’s erratic leadership and concerns about content safety rules raised by advertisers.
Meanwhile, Musk has been facing backlash over an antisemitic post on the platform, which led to advertisers pausing their spending on the site. Though he later apologized for the post, the damage was evident.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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