The New York times reported Sunday details related to the acquisition of Instagram by Facebook (s fb) that could spell legal concerns for both Instagram and Facebook. The Times reports that even though Instagram co-founder Kevin Systrom testified in August that the company “never received any offers,” before the Facebook sale, there were verbal agreements between Twitter and Instagram executives for an acquisition of $525 million in cash and Twitter shares.

The story notes that Systrom’s testimony carries perjury risks or fraud risks if Instagram did indeed recieve offers from Twitter before the sale to Facebook, since if Twitter did not receive a chance to provide a counter-offer, Instagram investors could have lost an opportunity to make more money off the acquisition.

When asked for a response to the Times story, Facebook declined to comment. Twitter has not yet responded for comment.

Any potential legal issues might rest on the notion of…