Twitter faces one more lawsuit over unpaid payments. As first reported by The New York Occasions, three former executives sued the corporate on Monday. In a criticism filed with the Delaware Chancery Court docket, former CEO Parag Agrawal, former CFO Ned Segal and former chief authorized officer Vijaya Gadde allege Twitter owes them greater than $1 million in unreimbursed authorized charges.
Elon Musk fired all three execs after taking management of the corporate final fall. The previous executives allege Twitter spent months ignoring letters they despatched asking it to honor a reimbursement settlement that they had in place earlier than their termination. In line with the criticism, Twitter lastly acknowledged the letters final month however did little else. As of Monday, the trio was nonetheless ready on the corporate to repay the charges.
The previous execs say they incurred the authorized charges responding to shareholder lawsuits and a number of other authorities investigations, together with one involving the US Division of Justice. The criticism states federal officers started sending requests to Agrawal and Segal final July. Then, late final 12 months, the Justice Division contacted Agrawal and Segal’s legal professionals to debate a number of investigations into Twitter. As CNN notes, the Justice Division has not beforehand disclosed an investigation into Twitter.
The lawsuit highlights Twitter’s ongoing monetary challenges. On the finish of final 12 months, the proprietor of the constructing that homes Twitter’s San Francisco headquarters sued the corporate for failing to pay lease. Musk has eradicated greater than 75 p.c of the roughly 7,500-person workforce Twitter employed beneath Agrawal. Final month, Musk stated Twitter noticed a 50 p.c decline in advert income.
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