Twitter Faces Lawsuit from Former Executives over Unpaid Fees

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A group of former Twitter executives, including Parag Agrawal, Vijaya Gadde, and Ned Segal, have sued the social media company for over $1 million in unpaid legal expenses related to a shareholder lawsuit and inquiries from federal agencies.

They claim that Twitter's obligation to cover their legal fees for proceedings related to their roles at the company remains in effect. The executives' lawyers have previously requested payment in January and March for expenses incurred while researching legal theories and developing a defense.

This lawsuit adds to the list of overdue payments that Twitter has been accused of since Elon Musk acquired the company and cut costs. The company's corporate bylaws and contracts with the former executives obligate Twitter to cover their legal fees for proceedings related to their onetime roles at the company.

The lawsuit was filed in the Delaware Court of Chancery, and Twitter is incorporated in Delaware with its business headquarters in San Francisco.

According to a previous report by the Wall Street Journal, Mr. Musk stated that he had fired the former Twitter executives for cause and was not obligated to pay the multimillion-dollar severance packages that they were expecting.