Former Twitter CEO Parag Agrawal and two other executives filed a lawsuit against the social media firm owned by Elon Musk on Monday, alleging that they were not reimbursed for more than $1 million in legal fees.
In the Twitter lawsuit, Agrawal, former Twitter CLO Vijaya Gadde, and former CFO Ned Segal claim Twitter "refused to acknowledge" its responsibilities and to return payment of any bills after they were released from the company after tech mogul Elon Musk purchased it, according to Axios.
The lawsuit against Twitter, filed in Delaware Chancery Court, claims that the company's officials misused company funds to pay for legal representation during DOJ and SEC investigations.
The Twitter lawsuit requests "an expedited ruling requiring Defendant to comply with its obligations" to pay attorney fees and expenditures related to "ongoing litigation and investigations."
According to the complaint, Parag Agrawal and Ned Segal have spent money on lawyers due to SEC investigations in 2022, per the Financial Times. When Musk first bought his 9.2% stake in the firm at the beginning of last year, he failed to make any disclosures required by securities law.
The purpose of the investigations and if they are still active are yet unknown. The Department of Justice did not immediately respond.
Executives' legal fees are typically tied to their official roles and paid for by their companies.
Twitter Facing Legal Troubles
Elon Musk has spearheaded Twitter's vigorous cost-cutting attempt to get the company's financial situation in check. Advertisers have reduced spending on the platform, and the business must pay $1.5 billion in interest each year on the $13 billion in debt Musk incurred to finance the purchase.
After Elon Musk tried and failed to back out of his $44 billion acquisition of Twitter last year, the company is now facing several investor lawsuits.
Some ex-employees have also filed a suit against Twitter, claiming they were improperly denied share incentives after being fired, The Los Angeles Times reported.
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