Twitter said today that payments made to a whistleblower did not breach any terms of its $44 billion buyout by Elon Musk.
This comes after Musk - the world's richest man - cited the move as another reason to scrap the deal.
In a letter to Twitter on Friday, lawyers for Musk said Twitter's failure to seek his consent before paying $7.75m to whistleblower Peiter Zatko and his lawyers violated the merger agreement, which restricts when Twitter could make such payments.
Zatko was fired by Twitter in January as the company's security head.
Last month he accused the social media firm of falsely claiming it had a solid security plan and making misleading statements about its defenses against hackers and spam accounts.
The whistleblower will meet the US Senate Judiciary committee tomorrrow to discuss the allegations.
Separately, Twitter is holding a special meeting tomorrow for shareholders to vote on the merger.
Musk, who also runs the electric car company Tesla, has accused Twitter of misrepresenting the prevalence of spam or bot accounts on its platform and has sought to terminate the deal citing those reasons.
A trial in Delaware Chancery Court is scheduled to begin on October 17.
