Another problem for Elon Musk: Former Twitter CEO Parag Agrawal reappears to sue the company

One of Elon Musk’s first steps after buying Twitter was to fire Parag Agrawal, the Indian-born engineer who had taken over as CEO. company CEO after the departure of Jack Dorsey in November 2021. Since then we have not heard from him, until today. The ex-director reappears on the scene, and he does so with lawyers and with a lawsuit on his hands.

According to the Court of the Delaware Chancellery, Agrawal along with other former employees, including former CFO Ned Segal, have sued Twitter for failing to pay refunds related to legal expenses that occurred while they were still at the company. company. In this regard, the plaintiffs demand a payment of $1 million.

More headaches for Musk

The document lists a series of lawsuits in which former Twitter employees were involved as defendants and whose legal expenses were assumed with money from their own pockets. We can see, for example, legal processes with the Department of Justice and the Securities and Exchange Commission of the United States.

The plaintiffs claim that both the agreements and the internal statutes established that the company should have paid the aforementioned legal expenses. However, they accuse him of “refusing to recognize his obligations and assume the payment of the invoices” after repeated requests made in recent months.

Some investigations, it should be noted, are still ongoing, which is why the payment in advance of the corresponding fees. At the moment, the new owner of Twitter has not ruled on the matter, but it is clear that a new lawsuit is knocking on his door when he tries to reduce expenses.

If we start to do the math, the payment of 1 million dollars may be insignificant compared to the 44,000 million dollars that the social network cost Musk. It is also a small amount in relation to the high compensation packages that the magnate avoided paying by making a dismissal from Agrawal.

The legal team of the new CEO of Twitter found a way to prove justified causes in the dismissal of the previous head of the social network (and also of other senior executives). In the event that this movement had not been effective, he would have had to pay compensation of close to 60 million dollars.

It’s no secret that the company is facing several lawsuits. On the one hand, some of the fired employees claim that they were not notified in advance, so they have started their own legal battle. The owners of some of their offices have also done so, in this case, due to non-compliance with rent payments.

And getting money to meet the obligations that lie ahead may not be an easy task. Twitter, according to Musk himself, is already worth half of what it cost him. Besides, nearly 90% of top advertisers They have reduced their spending. Within the social network, complex moments are lived, of that there are no doubts.

Images: Daniel Obershaus | Twitter | Elon Musk

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