Shillong, October 4: Delaware Chancery Court Judge Kathaleen St. J. McCormick has ruled in favor of former Twitter CEO Parag Agrawal, former policy lead Vijaya Gadde, and other executives, awarding them $1.1 million in legal fees from Elon Musk’s X Corp.
The ruling states that Twitter “violated its duties to cover legal expenses generated by their work for the company.”
As per IANS, Parag Agrawal, of Indian origin and the former CEO of Twitter, along with former legal head Vijaya Gadde and former chief financial officer Ned Segal, filed a lawsuit against Musk’s Twitter in April of this year over unpaid legal bills exceeding $1 million.
In October of the previous year, Elon Musk informed Agrawal, Gadde, and Segal that their employment with Twitter was terminated as he assumed control of the micro-blogging platform.
The lawsuit claimed that Twitter owed them over $1 million for legal fees incurred during their tenure at the company to respond to inquiries from the Department of Justice and the Securities and Exchange Commission (SEC) in various hearings.
Agrawal and Segal were named as defendants in the Securities Class Action lawsuit in September while they were still employed at Twitter.
Gadde was included as a defendant in the Securities Class Action in February of the following year when plaintiffs in that case filed an Amended Class Action Complaint, according to the lawsuit.
Reportedly, these three top executives had an exit package valued at approximately $90-100 million when they departed from Twitter. Agrawal was set to receive the largest payout, around $40 million, primarily due to the vesting of his shares upon his termination.
