Ex-Twitter CEO Parag Agrawal, aide Vijaya Gadde sue Elon Musk for $1 million for unpaid legal expenses
Ex-Twitter CEO Parag Agrawal, aide Vijaya Gadde sue Elon Musk for $1 million for unpaid legal expenses
One of the first things Elon Musk did when he took over Twitter, was fire then CEO Parag Agrawal, his close aide and policy chief Vijaya Gadde along with CFO Nel Segal. They were in fact removed the very next day after Musk took over.
Now the trio have filed a lawsuit against Twitter, alleging that the Elon Musk-led social media platform owes them over $1 million over bill-related issues pertaining to legal expenses all of which, the three had accrued on behalf of Twitter, on a number of legal issues and court hearings.
Also read: Twitter apparently asked Parag Agrawal and Ned Segal to return to manage operations
They have all filed lawsuits against Musk, seeking recompense for the costs of litigation, investigations, and inquiries linked to their previous positions. In the case, Agrawal and the company’s former senior legal and finance officers say that they are owed more than $1 million, which Twitter is legally compelled to pay.
According to AFP, the court document cited numerous costs linked with investigations by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), but did not reveal the scope of the investigations or whether they were still continuing. Agrawal and former CFO Ned Segal testified before the SEC last year and have continued to work with federal authorities. The SEC is investigating whether Musk followed securities laws when he acquired Twitter stock.
After Musk revealed “Twitter Files” linked to the site’s content filtering, former Twitter chief legal officer Vijaya Gadde testified before a US Senate panel on big tech and free speech. Gadde was also mentioned in a complaint by a guy who claimed he was “doxed” as a white nationalist on Twitter.
Musk let go of Agrawal, Gadde, and Segal in late October, following his $44 billion buy of Twitter. The three former executives claim that Twitter owes them money, but the firm has simply acknowledged receiving their bills.
Even though Agarwal had to quit his post after just 10 months, he did so as a very wealthy man. According to sources, Parag Agrawal not only had the golden parachute clause in his contract with Twitter, but he also owned stock in the firm.
According to a Twitter filing with the US Securities and Exchange Commission, Parag owns little more than 128,000 Twitter shares, which are now worth roughly $7 million at the amount Musk is paying. As a result, Agrawal is expected to have earned a severance package of close to $50 million.
All in all the three top executives had a severance package worth $137 million if certain reports are to be believed. What is the status of those packages, and if any of them saw anything being paid to them from these packages, has not been disclosed.
Twitter has also been accused of failing to pay rent or other bills as Musk follows through on his promise to “cut costs like crazy.” Meanwhile, market experts think that Twitter’s advertising income has decreased owing to concerns over the spread of disinformation and offensive material as Musk cuts moderating efforts.
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