Ex-Twitter Execs Sue for $1M in Unpaid Legal Fees in Battle with Elon Musk

 

Former Twitter executives who were fired on Elon Musk’s first day in charge are suing the company for more than $1 million in unpaid legal bills.

 

The lawsuit, filed on Monday, April 10, in Delaware Chancery Court, is on behalf of the social media network’s former CEO, Parag Agrawal, former CFO, Ned Segal, and former head of legal and policy, Vijaya Gadde.

 

They spent more than $1 million on personal legal fees in connection with government investigations, including those conducted by the Department of Justice, the Securities and Exchange Commission (SEC), and shareholder lawsuits.

 

The trio, who were fired by Musk after he purchased Twitter for $44 billion in October, incurred’significant expenses’ as a result of their previous positions.

They claim that the company has “refused to acknowledge its obligations and remit payment of any invoices.”

 

According to the lawsuit, the Justice Department contacted Agrawal and Segal’s attorneys in 2022 “regarding certain investigations related to the company.”

 

However, the nature of the probe and whether it is still operational are unknown.

According to the lawsuit, the couple also incurred legal expenses in response to SEC inquiries in 2022.

 

The SEC is looking into whether Musk violated securities laws by failing to make timely disclosures when he purchased a 9.2 percent stake in Twitter early last year.

 

While still working at Twitter, Agrawal and Segal were contacted by federal authorities in July, and the SEC asked Agrawal to preserve documents in September.

 

They are also named alongside Gadde in a shareholder lawsuit, and she was forced to pay legal fees related to her February testimony before the House Oversight and Accountability Committee.

 

According to the lawsuit, Twitter’s corporate bylaws and contracts with former executives require the company to pay their legal fees in matters pertaining to the social media company.

 

In addition, the former executives notified Twitter of the expenses incurred more than two months ago but have yet to be reimbursed.

 

Aaron Zamost, a spokesman for Segal and Gadde, said: ‘Once again, Twitter has failed to honor its contractual obligations to pay its bills.’

 

Since taking over, Musk has aggressively cut costs at Twitter, firing more than 75% of its 7,500 employees.

 

He fired Agrawal, Segal, and Gadde ‘for cause’ last year, nullifying the large severance payments they were due, which would have totaled nearly $60 million for Agrawal.

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