Several former Twitter executives, including former CEO Parag Agrawal, have filed a lawsuit against the social networking site for not paying them more than a million dollars in legal expenses. The lawsuit was filed before the court of the Delaware Chancery by Vijaya Gadde, former legal director of the company, Ned Segal, former financial director of the company, and Agrawal himself.
According to reports by The Wall Street Journal, the three plaintiffs were part of the senior management team that Elon Musk fired when he acquired Twitter nearly six months ago. Agrawal, Segal, and Gadde have requested payment from Twitter for the expenses incurred in responding to lawsuits and investigations related to their former positions. Twitter owes them for legal advice related to a shareholder complaint and subpoenas made by the US Securities and Exchange Commission and the Department of Justice.
The executives claim that Twitter is legally obligated to cover their expenses for any proceedings related to their corporate roles. They requested payment from the company in January, but Twitter has yet to respond. The company has been attempting to cut costs since Elon Musk acquired the app at the end of 2022, leading to significant employee layoffs and the auctioning off of office supplies. The company has also stopped paying rent for its headquarters.
Twitter’s current primary objective is to promote its Twitter Blue subscription service, which provides users with exclusive features for eight euros per month, including the coveted blue checkmark, previously only available to high-profile users. The social network is also developing new tools, including a feature that would enable users to send money, which the Financial Times suggests may be available in the United States by 2024.
The impact of the lawsuit on Twitter’s reputation and financial position is uncertain. The company has been struggling with declining advertising revenue, which has fallen by more than 50%, and its efforts to cut costs have resulted in layoffs and reduced expenses. While the lawsuit may have an impact on Twitter’s financial position, it is unclear how it will affect the company’s overall strategy and direction.
