Audio Posts and Shared Links Audio Sources - Full Text Articles

Twitter’s former top execs, fired by Elon Musk on his first day in charge, are suing the company for $1 million in unpaid bills

Parag Agrawal and Elon Musk, the former and current Twitter CEOs.Parag Agrawal and Elon Musk, the former and current Twitter CEOs.

Kevin Dietsch/Getty Images; Theo Wargo/WireImage

  • Twitter’s former CEO, CFO, and chief legal officer are suing Twitter for over $1 million.
  • They claim they had agreements with the company that it would reimburse any legal fees they incurred.
  • The company took two months to acknowledge their demands and still won’t pay, the suit alleges.

Twitter’s former CEO and two other ex-executives who were fired by Elon Musk are suing the company, alleging it owes them more than $1 million in legal costs.

In the suit filed Monday in the Delaware Chancery Court, which Insider has reviewed, the trio allege they had agreements with Twitter that it would repay the “significant” fees they spent on legal costs relating to separate actions against the company.

The suit claims that Twitter initially agreed to cover costs but then took months to acknowledge a demand for payment, and when it did “refused to acknowledge its obligations and to remit payment of any invoices.”

Former CEO Parag Agrawal, as well as ex-chief financial officer Ned Segal, and Vijaya Gadde, the former legal chief, list five proceedings against Twitter for which they were named as defendants and therefore had to incur legal expenses. 

They include inquiries from the Securities and Exchange Commission and Department of Justice, which Agrawal and Segal were first contacted about in 2022. 

The SEC is currently investigating whether Musk breached regulations by delaying the disclosure of his initial 9.2% stake in Twitter.

Agrawal was asked by the SEC to “take measures to preserve certain documents pertaining to his work” at Twitter both before and after he left, the suit says. The suit doesn’t specify which documents. 

An investigation from the DoJ and Federal Trade Commission last year saw Twitter agree to pay $150 million to settle allegations that it failed to inform users that it was using phone numbers and email addresses to help businesses engage in targeted advertising.

The suit claims the two ex-execs racked up legal fees to deal with these cases and comply with various demands.

Emails in the suit also show that the majority of the legal fees are owed to Gadde, who spent $1.1 million on legal costs related to her Congressional testimony in February.

The trio’s action against Twitter follows several others alleging that the company has failed to pay bills since Musk took over the company last October. 

They range from millions in unpaid rent on its headquarters to owing a merch company $7,000 for a “swag gift box” for Musk. Twitter has been increasingly cutting costs since Musk’s takeover, also slashing its workforce by 75%, cutting out office perks like free lunch, and auctioning off everything from office chairs to Twitter sculptures.

Insider contacted Twitter for comment. The company responded with an automated message that didn’t address the inquiry.

Read the original article on Business Insider
WP Radio
WP Radio