Three former Twitter executives, including ex-CEO Parag Agarwal, have initiated legal action against the social media giant, seeking compensation for expenses linked to legal proceedings, investigations, and congressional inquiries stemming from their previous positions. The trio asserts that Twitter is legally required to cover these costs, which exceed $1 million. The lawsuit mentions expenses associated with the US Securities and Exchange Commission (SEC) and Department of Justice (DOJ) probes, but does not divulge specifics concerning the investigations or whether they remain active.
Agarwal and erstwhile CFO Ned Segal appeared before the SEC in 2022 and maintained communication with federal officials. The SEC is scrutinizing whether Elon Musk adhered to securities regulations while purchasing Twitter shares. Ex-chief legal officer Vijaya Gadde was involved in a US Congressional hearing concerning big tech and freedom of speech after Musk revealed the “Twitter Files” pertaining to content moderation. Additionally, Gadde was cited in a lawsuit by a man alleging he was “doxed” as a white supremacist on Twitter.
The former executives were dismissed by Musk after he acquired Twitter in October. They contend that while Twitter is legally obliged to compensate them, it has only acknowledged the receipt of their expense records. In the wake of Musk’s hostile takeover, Twitter implemented extensive layoffs, prompting concerns about the platform’s stability and its capacity to tackle misinformation and other forms of misuse.
