Parag Agrawal and a group of former Twitter executives have been granted $1.1 million in legal fees following their legal dispute against Elon Musk’s company, X Corp. Delaware Chancery Court Judge Kathaleen St. J. McCormick ruled that Twitter had failed in its obligation to cover the legal expenses incurred during their tenure at the company.
Parag Agrawal initiated this legal battle. He was the CEO of Twitter at the time, alongside Vijaya Gadde, the former lead policy officer, and other executives. They filed the lawsuit in April due to unpaid legal bills exceeding $1 million.
In essence, the court has determined that X Corp, formerly known as Twitter, must now pay the aforementioned $1.1 million in legal fees amassed by these former top executives. Their argument centered on Twitter’s violation of its own bylaws by neglecting to cover these expenses, despite their connection to investigations into the platform’s operations.
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This dispute arose following Elon Musk’s acquisition of Twitter for $44 billion, which resulted in the departure of these executives. Musk had also faced a series of legal actions for failing to compensate Twitter vendors, such as rent and consulting fees.
Currently, X Corp has paid around $600,000 of the owed amount but has withheld $1,158,427 in fees associated with legal representation for the former top managers during a congressional inquiry into the impact of social media on U.S. elections.
Vijaya Gadde had to appear before the House Committee on Oversight and Reform as part of this inquiry.
A separate report from Bloomberg revealed that Judge McCormick’s ruling relied on the acknowledgment that while $1.1 million is a substantial sum, it is not an unreasonable one. Ultimately , it favored the former Twitter executives in this legal battle.