Former CEO Parag Agarwal, other executives sue Twitter: Know why
Former Twitter CEO Parag Agrawal was among the first to be fired from the company after Elon Musk's takeover. Now, he, along with two other ousted executives, has sued the microblogging platform for reimbursements related to costs of litigation, investigation, and congressional inquiries about their former jobs. Other executives involved are former chief financial officer Ned Segal and chief legal officer Vijaya Gadde.
Why does this story matter?
- Agrawal, Segal, and Gadde were chapters Musk closed the moment he acquired the company. However, the lawsuit proves those chapters are not closed yet.
- Musk axed the company's top brass due to the difference in their views. A self-proclaimed free-speech absolutist, the billionaire was at odds with how the trio handled the company.
- It seems there is still some unsettled animosity.
The trio claims Twitter owes them over $1mn
In their lawsuit, Agrawal, Gadde, and Segal claim Twitter owes them money. The suit outlined various investigations related to Twitter the trio were part of after their ouster. They have listed expenses related to inquiries by the Securities and Exchange Commission (SEC) and the Department of Justice. According to them, Twitter is legally bound to pay them over $1 million.
They have been involved in Twitter-related investigations and inquiries
Per court documents accessed by the news agency AFP, Agrawal and Segal testified before the SEC last year and "have continued to engage with federal authorities." Gadde, on the other hand, testified before a US Congressional committee after Musk released Twitter files related to content moderation on the platform. The SEC is investigating whether Musk followed securities rules when he acquired Twitter shares.
Details about the investigations are not revealed
The lawsuit does not reveal much about the investigations, as revealing more details would lead to compromising details of the nature of the investigation. It is also unclear whether the investigations are still ongoing or not.
Twitter merely acknowledged the receipts
According to the plaintiffs, Twitter is yet to do anything despite its legal obligation to pay them. They said the company had not done anything but acknowledge the receipts sent by them. It needs to be seen how Musk's firm responds to this lawsuit about unpaid bills. The legal basis under which they are claiming money from Twitter is also unclear as of now.
