New York: Social media platform X, run by billionaire Elon Musk, has been sued by a former Twitter board member for $20 million. Omid Kordestani, the former chief executive of Twitter (now called X), has sued the social media platform, alleging that Musk refused to cash out more than $20 million in stock that belongs to him, according to reports.
The reports further said Kordestani had received most of his compensation in stock, but after Musk bought the company, he allegedly refused to pay him those shares, according to the lawsuit.
Musk and X have yet to comment on the lawsuit filed in California Superior Court in San Francisco. Kordestani had joined Twitter’s board of directors in 2015. He oversaw the company’s sale to Musk in October 2022.
According to the lawsuit, Platform X “seeks to profit from Kordestani’s seven years of service on Twitter without paying him for it.”
The Musk-led platform “refuses to meet those obligations, adding to a long list of unpaid bills that have piled up under Musk’s watch,” the lawsuit added.
Previously, Parag Agrawal, former CEO of Twitter (now called X), and three other employees sued Elon Musk for about $128 million in unpaid severance pay. Agrawal, along with former CFO Ned Segal, former Twitter legal and policy director Vijaya Gadde, and former Twitter general counsel Sean Edgett, filed the suit.
The suit claims the Tesla CEO showed “particular anger” toward them by “publicly promising to withhold his severance payments of around $200 million” when he took over Twitter in 2022 for $44 billion.
According to previous reports, the three top executives had exit packages of more than $100 million when they left the company.
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