Former Twitter execs sue company over unpaid legal fees

They allege Twitter owes them more than $1 million in unreimbursed legal fees.

Brendan McDermid / reuters

Twitter faces yet another lawsuit over unpaid bills. As first reported by The New York Times, three former executives sued the company on Monday. In a complaint filed with the Delaware Chancery Court, former CEO Parag Agrawal, former CFO Ned Segal and former chief legal officer Vijaya Gadde allege Twitter owes them more than $1 million in unreimbursed legal fees.

Elon Musk fired all three execs after taking control of the company last fall. The former executives allege Twitter spent months ignoring letters they sent asking it to honor a reimbursement agreement they had in place before their termination. According to the complaint, Twitter finally acknowledged the letters last month but did little else. As of Monday, the trio was still waiting on the company to repay the fees.

The former execs say they incurred the legal fees responding to shareholder lawsuits and several government investigations, including one involving the US Department of Justice. The complaint states federal officials began sending requests to Agrawal and Segal last July. Then, late last year, the Justice Department contacted Agrawal and Segal’s lawyers to discuss multiple investigations into Twitter. As CNN notes, the Justice Department has not previously disclosed an investigation into Twitter.

The lawsuit highlights Twitter’s ongoing financial challenges. At the end of last year, the owner of the building that houses Twitter’s San Francisco headquarters sued the company for failing to pay rent. Musk has eliminated more than 75 percent of the approximately 7,500-person workforce Twitter employed under Agrawal. Last month, Musk said Twitter saw a 50 percent decline in ad revenue.

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