Former Twitter security head, Alan Rosa, has filed a lawsuit 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.
According to The Verge, Rosa alleges that his opposition to Musk’s cost-cutting measures, which threatened regulatory compliance, led to his firing. The lawsuit also names Steve Davis, a company adviser, and Twitter (now called X).
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. He maintains that his refusal to do so resulted in his access being revoked and his employment being terminated without notice or reason.
It is 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 previous one, citing it as a precedent.
This lawsuit is significant as it follows reports of Twitter’s dramatic decline in value 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. Insiders attribute this decline to Musk’s erratic leadership and concerns about content safety rules raised by advertisers.
In addition, Musk has faced backlash over an antisemitic post on the platform, which led to advertisers pausing their spending on the site. Although he later apologized for the post, the damage was already done.
Overall, this lawsuit highlights the ongoing challenges faced by Musk and his leadership of Twitter. It remains to be seen how the legal action will unfold and what impact it will have on the future of the platform.