TWTR - Musk can add whistleblower payment to Twitter suit

The judge overseeing Twitter's ( NYSE: TWTR ) case to force Elon Musk to go through with his $44B deal to buy the company will allow Musk to bring in the facts around a whistleblower settlement payment - but will also allow some additional discovery on whether Musk had contact with the whistleblower before he went public.

Delaware Chancellor Kathaleen McCormick noted that Musk's side wanted to add in allegations tied to the complaint of Twitter whistleblower Peiter "Mudge" Zatko, to include facts from Sept. 3 that Twitter entered a June severance agreement to pay Zatko $7.75M.

Musk claimed that his consent for that payment was required from the merger agreement, and wasn't sought by Twitter - and wants related claims added to his counterclaim against the company.

Twitter ( TWTR ) didn't oppose that effort, but argued it should be conditioned on discovery of communications between Zatko and Musk - a move that Musk had opposed.

McCormick granted Musk's motion to amend his claim, but added that Twitter's "request that the court allow the amendment subject to conditions relating to discovery concerning the amendment is reasonable."

With a lack of clarity on what the sides are agreeing to, McCormick has set a new discovery hearing to decide the matter for Sept. 27.

A five-day trial on the case is set to begin Oct. 17.

Reports Wednesday said that Twitter has faced an exodus of hundreds of employees following a high-profile all-hands meeting with Musk in June . And Musk will sit for deposition in the Twitter trial next week .

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