Three former executives of Twitter have filed a lawsuit against the company, seeking reimbursement for legal expenses incurred during investigations and congressional inquiries relate to their previous roles. The lawsuit was lodged on Monday following their dismissal by Elon Musk last year after his acquisition of the social media platform.
Parag Agrawal, the ex-CEO, along with the company’s former chief legal officer Vijaya Gadde and former chief financial officer Ned Segal, claim they are owed over $1 million (approximately Rs. 8 crore) and assert that Twitter is contractually obligated to cover these costs.
In response to an AFP inquiry regarding the suit, Twitter returned a comment in the form of a poop emoji, continuing its trend of unconventional communication.
The legal documents detail various expenses linked to investigations being conducted by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), although specifics regarding these inquiries or their current status are not disclosed.
According to the court filings, Agrawal and Segal provided testimony to the SEC last year and have maintained communication with federal agencies.
The SEC’s investigation focuses on Musk’s adherence to securities regulations during his acquisition of Twitter shares.
Meanwhile, Gadde participated in a US congressional hearing concerning big tech and free speech after Musk released the so-called “Twitter Files” late last year that pertained to the platform’s content moderation policies.
Additionally, Gadde faces litigation herself, being named as a defendant in a lawsuit from an individual alleging they were “doxed” on Twitter as a result of a false claim associating them with white supremacy.
Musk dismissed Agrawal, Gadde, and Segal from their positions at the end of October following his contentious $44 billion (about Rs. 3,61,000 crore) takeover of Twitter.
The trio asserts that Twitter has an obligation to reimburse them in accordance with existing agreements but has merely acknowledged receipt of their invoices without further action.
Since Musk’s takeover, the company has significantly reduced its workforce, leading to widespread concerns about the platform’s reliability and its capability to combat misinformation and other abuses.
Moreover, reports have surfaced indicating that Twitter is facing accusations for failing to pay rent and other expenses, aligning with Musk’s promise to “cut costs like crazy.”
At the same time, advertising revenue at Twitter has reportedly declined sharply, attributed to worries about the increase of misinformation and offensive content as Musk eases moderation measures.
