Twitter's former CEO, CFO, and chief legal officer have sued the company for more than $1M, claiming that it failed to cover legal costs related to shareholder lawsuits and federal investigations.
Former CEO Parag Agrawal, ex-CFO Ned Segal, and former legal chief Vijaya Gadde were among the executives fired when Elon Musk closed on the Twitter acquisition in late October.
- In the new lawsuit filed in the Delaware Chancery Court, the plaintiffs accused Twitter of failing in its obligation to cover legal expenses related to their corporate roles.
- Since they were fired, the trio said they were named as defendants in five proceedings, including shareholder complaints and probes led by the SEC and Justice Department.
- While they claim Twitter initially agreed to cover those legal costs, the company allegedly took months to respond before it "refused to acknowledge its obligations and to remit payment of any invoices," according to the suit.
- The executives are now seeking reimbursement of more than $1M in attorneys' fees and other costs.
- Twitter did not respond to media requests for comment. Last year, a lawsuit filed on behalf of Twitter shareholders accused Musk of engaging in behaviors to drive down the price of Twitter's stock, purportedly with the goal of walking away from the acquisition agreement or lowering the price.
