Musk’s X Will Have To Reimburse Parag Agrawal, Vijaya Gadde Legal Fees
Reports said on October 4 that Delaware Chancery Court Judge Kathleen St. J. McCormick ruled in favor of Agrawal and the team as Twitter “violated its duties to cover legal expenses generated by their work for the company.”
Indian-origin Twitter CEO Agrawal, ex-legal head Gadde, and former chief financial officer Ned Segal sued Musk-run Twitter in April this year over unpaid legal bills of more than $1 million.
In October last year, Musk informed Agrawal, Gadde, and Segal that their employment with the company was terminated as he took control of the micro-blogging platform.
According to the lawsuit, the trio alleged that Twitter must pay them more than $1 million for legal fees they incurred while at the company to respond to queries by the Department of Justice and Securities and Exchange Commission (SEC) in several hearings.
Agrawal and Segal were named as defendants in the Securities Class Action in September while both were still working at Twitter.
Gadde was named as a defendant in the Securities Class Action in February this year, when plaintiffs in that action filed an Amended Class Action Complaint, according to the lawsuit.
According to reports, these three top executives had an exit package of around $90-100 million when they left Twitter. Agrawal was set to receive the largest payout at around $40 million, largely due “to the entirety of his shares vesting upon his firing”.