Former Twitter Executives, Including Ex-CEO Parag Agarwal, File Lawsuit Seeking Reimbursement for Legal Expenses Exceeding $1 Million

• ByStartupStory     |    April 11, 2023

Three former Twitter executives, including ex-CEO Parag Agarwal, have filed a lawsuit against the social media giant, seeking reimbursement for expenses incurred as a result of legal proceedings, investigations, and congressional inquiries related to their previous positions. According to the trio, Twitter is legally obligated to cover these costs, which exceed $1 million. The lawsuit mentions expenses associated with US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) investigations, but does not go into detail about the investigations or whether they are still ongoing. 

In 2022, Agarwal and former CFO Ned Segal appeared before the SEC and maintained contact with federal officials. The SEC is investigating whether Elon Musk followed securities regulations when he purchased Twitter shares. After Musk revealed the “Twitter Files” pertaining to content moderation, ex-chief legal officer Vijaya Gadde was involved in a US Congressional hearing concerning big tech and freedom of speech. In addition, Gadde was named in a lawsuit filed by a man who claimed he was “doxed” as a white supremacist on Twitter. Musk fired the former executives after acquiring Twitter in October. They claim that, while Twitter is required by law to compensate them, it has only acknowledged receipt of their expense records.

 

Following Musk’s hostile takeover, Twitter laid off a large number of employees, raising concerns about the platform’s stability and ability to combat misinformation and other forms of misuse.

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