Toby M. Galloway, chair of Winstead PC's securities litigation & enforcement practice group, said the whistleblower allegations could create serious risks for Twitter. Typical breach disputes involve inadequate, or negligent, responses to breaches, he said.

"If these explosive allegations are true — which is a huge if — and Twitter actually knew its controls were inadequate and misrepresented that to the SEC and others, it could have considerable exposure," Galloway said. "The SEC and other agencies could investigate it for fraud."

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