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On Wednesday, a group of former executives from Twitter Inc., led by former CEO Parag Agrawal, filed a lawsuit against the company, claiming it owes them over $1.6 million in legal fees.
What Happened: The former executives allege that Twitter is refusing to cover legal fees related to lawsuits and government probes that occurred during their tenure, Bloomberg reports.
The executives are seeking a court order to compel Twitter’s new owner, Elon Musk, to pay these fees.
They claim that Twitter’s refusal violates its own bylaws. The executives were ousted when Musk purchased the company for $44 billion last year. Twitter has paid about $600,000 of what it owes, but has withheld over $1.1 million in legal fees, according to the filing.
Twitter is also facing multiple lawsuits alleging that the company, under Musk’s leadership, has failed to pay millions owed to former employees, vendors, and landlords. Former employees have sued, claiming they were wrongfully denied promised stock grants after being laid off.
See Also: Threads Is Just Better: Musk’s Own Employees Are Signing Up For Zuckerberg’s Twitter Clone
Why It Matters: This lawsuit adds to the mounting legal challenges facing Twitter. The platform is already facing a class-action lawsuit from former employees claiming $500 million in unpaid severance.
The company is also grappling with a significant decrease in traffic and increased competition, particularly from Meta Platforms Inc.’s (NASDAQ:FB) new social media app, Threads.
These legal and operational challenges come at a time when Twitter is trying to stay financially solvent under Musk’s leadership.
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