Elon Musk’s Twitter is facing yet another legal battle as the social media platform’s former top three executives including then CEO Parag Agrawal, who were sacked by the billionaire, filed a suit on April 10.
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Agrawal, Twitter’s former general counsel Vijaya Gadde and Ned Segal, former chief financial officer, were fired by Musk when he acquired the platform for $44 billion in October.
Agrawal, along with the company's former chief legal and financial officers, has sought that they be reimbursed for costs of litigation, investigations and congressional inquiries related to their former jobs, according to an AFP report. They have claimed they are owed over $1 million and that Twitter is legally bound to pay them.
As per the report, Twitter responded to an AFP request for comment with a poop emoji, as has become its practice.
The court filing cited by AFP suggests numerous expenses related to inquiries by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) were incurred. However, it does not include details on the nature of the investigations or whether they are still ongoing.
According to court documents, Agrawal and then-chief financial officer Ned Segal provided testimony to the SEC last year and "have continued to engage with federal authorities.” The SEC is probing whether Musk complied with securities rules when he accumulated Twitter shares.
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Gadde was called on to take part in a US congressional hearing about big tech and free speech following Musk's release late last year of so-called "Twitter Files" related to the site's content moderation. The former was also named as a defendant in a lawsuit by a man who claimed he was "doxed" at Twitter as a white supremacist, the filing said.
The three former executives contest that as per their contracts, Twitter is required to reimburse them but it has done no more than acknowledge it received their invoices.
Twitter laid off roughly 3,700 employees, or half its workforce, in early November in a cost-cutting measure by Musk, who paid $44 billion to acquire the social media platform. Hundreds more employees subsequently resigned.
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Last week too, Twitter faced a lawsuit accusing the social media giant of illegally laying off contract workers without notice, the latest action stemming from its massive job cuts.
The proposed class action, filed in San Francisco federal court, claims Twitter in November laid off numerous workers employed by staffing firm TEKsystems Inc without the 60 days of advance notice required by U.S. and California law.
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