Former Twitter employees have sued the social network over alleged unpaid legal reimbursements, including ex-CEO Parag Agrawal, ex-legal head Vijaya Gadde, and ex-CFO Ned Segal.
The lawsuit, filed in Delaware Chancery Court, claims that Twitter owes the former executives more than $1 million in legal fees incurred while working for the company to respond to Department of Justice and Securities and Exchange Commission requests.
According to the lawsuit, “This action seeks an expedited ruling requiring Defendant to comply with its obligations to advance legal fees and expenses relating to ongoing litigation and investigations,”
The document details a number of legal battles and government investigations that these executives were involved in as defendants over the years. The plaintiffs requested reimbursement from Twitter several times, but only received acknowledgment receipts in response, according to the document.
According to the filing, Twitter “breached the agreements [with employees] and violated the bylaws” by failing to pay the former employees.
Elon Musk fired Agrawal, Gadde, and Segal as soon as he took over Twitter last October. Bloomberg reported at the time that these executives had received an exit package worth more than $100 million.
Following Musk’s acquisition of Twitter, the company has been the subject of numerous lawsuits. These include claims by former employees and contractors that the company fired them without providing adequate notice, as well as claims by several vendors that the company failed to pay bills on time.
Twitter is also embroiled in a legal battle in Germany, where authorities are attempting to fine the company for failing to remove hate speech. Companies that violate the rules could face fines of up to €50 million under the country’s Network Enforcement Act (aka, NetzDG).
Aside from Gadde, Twitter has lost a few legal heads recently, including James Baker in December and Christian Dowell earlier this month.