Former Twitter executives filed a class action lawsuit Monday against the platform, demanding that it reimburse them for legal fees incurred in connection with shareholder lawsuits and investigations by authorities into their former company.
Parag Agrawal, former head of the social network, Vijaya Gadde, former legal director and Ned Segal, former financial director, demand more than a million dollars from Twitter, according to the complaint filed before a specialized court in Delaware.
They were all fired by Elon Musk on October 27, 2022, the day the Tesla and SpaceX boss bought the platform.
The complaint reports numerous legal costs related to lawsuits, but also investigations by the SEC (the policeman of the US stock market) and the Department of Justice. It does not specify the nature of the ministry’s investigation, nor whether it is still relevant.
The SEC is investigating whether Elon Musk followed the rules when he took a stake in Twitter.
Millions of dollars in arrears
The plaintiffs say they sought reimbursement from Twitter for their costs more than two months ago, without success. They mention in particular the hundreds of thousands of dollars spent by Vijaya Gadde to prepare for a hearing before a parliamentary committee at the end of January.
Following a tumultuous takeover, Elon Musk laid off thousands of employees from the San Francisco group, whittling it down to the bare minimum, some 2,000 employees instead of 7,500, according to estimates.
Office owners, consultants, and contractors have filed several complaints demanding payment of rent and Twitter bills. In February, the Wall Street Journal Total outstanding amounts estimated at $14 million, not including interest.
In December, the billionaire said in an online discussion that he had vowed to “cut costs like crazy” to avoid a default, while many advertisers, discouraged by the new boss, are no longer buying ad space on the platform.
Source: BFM TV
