Ex-Twitter CEO Parag Agrawal and two other Twitter former executives have sued the social media CEO Elon Musk over unpaid bills.
In a 20-page lawsuit filed in Delaware Chancery Court on Monday, these executives claim that they are owed a total of more than $1 million which Twitter is yet to pay. They are seeking to be reimbursed for the costs of litigation, investigations, and congressional inquiries related to the former jobs.
In their claims, they added that their lawyers have on several occasions sent letters to Twitter’s attorneys outlining the legal expenses they have racked up, but the social media company has gone against its laws by refusing to reimburse the money to cover their expenses. Representatives of Twitter are still yet to respond to the lawsuit filed against the San Francisco-based company.
It would be recalled that in October 2022 following his acquisition of Twitter for a $44 billion deal, Musk immediately fired Twitter’s former Chief Executive Parag Agrawal, as well as other top executives such as Chief Financial Officer Ned Segal and legal affairs and policy chief Vijaya Gadde.
Following his sack, Agrawal was not meant to leave empty-handed, as part of the deal, the CEO will vest 100% of his unvested equity awards, according to a filing. Research firm Equilar estimated that he’ll make an estimated $42 million. Unfortunately, with his recent claims in the lawsuit, he reveals that he is still being owed by the company.
Ever since taking over as Twitter’s CEO, Elon Musk has been slammed by one lawsuit or the other. In November 2022, a lawsuit was filed against Twitter alleging that the social media company headed by Musk violated federal and state law that requires 60 days’ notice of mass layoffs, according to a court document.
The suit sought a court to declare that Twitter violated the WARN Act and to prevent it from doing so. It also sought to prevent Twitter from trying to obtain releases from workers without informing them of their rights.
Also, in April this year, several companies sued Twitter alleging that it has failed to pay some of its bills. In the proposed class-action lawsuit filed in the US District Court for the Northern District of California, the companies accused Twitter of not paying around $230,000 in bills. The allegations range from unpaid invoices to marketing companies for branded merchandise to rent for Twitter’s offices.
Investors King understands that since Musk took over the company in October, he has been on a cost-cutting spree which might be attributed to the several fees owed to former executives and companies.