By The Nexus Gazette.
13th Augist, 2024.
In a significant legal development, Omid Kordestani, the former executive chairman of Twitter, has filed a lawsuit against X, the social media platform formerly known as Twitter, seeking $20 million in unpaid shares. This lawsuit is the latest addition to a series of legal challenges faced by Elon Musk’s company since his acquisition of the platform.
Omid Kordestani joined Twitter in 2015, leaving a highly lucrative position at Google. His compensation package was structured with a modest salary of $50,000 but was heavily reliant on stock options and performance-based incentives. Kordestani served as executive chairman until 2020 and continued as a board member until Musk’s acquisition of Twitter in 2022.
The lawsuit, filed in the California Superior Court in San Francisco, alleges that X has failed to meet its contractual obligations to Kordestani. According to the legal filing, Kordestani was entitled to over $20 million in stock options and additional payouts shortly after Musk’s $44 billion acquisition of Twitter. These payments have reportedly not been made, prompting Kordestani to seek redress through the courts.
The lawsuit claims that X “seeks to reap the benefits of Mr. Kordestani’s seven years of service to Twitter without compensating him as per the clear contractual language requiring X Corp. to do so.” In addition to the $20 million in stock options, Kordestani also claims he is owed an additional $3 million in stock payouts.
Kordestani’s lawsuit is part of a broader pattern of legal disputes involving former Twitter executives and employees. Several high-profile former executives, including the company’s former CEO and CFO, have also pursued legal action against Musk for unpaid compensation. Additionally, numerous former employees have filed mass lawsuits alleging wrongful termination and inadequate severance pay.
Musk has defended himself against these claims, asserting that the individuals let go from the company were terminated due to gross negligence and willful misconduct. Despite these defenses, the legal challenges continue to proliferate, reflecting the tumultuous nature of the transition period following Musk’s acquisition.
The resolution of Kordestani’s lawsuit could have substantial implications for X and its financial obligations to former employees and executives. As these legal battles progress, they will likely continue to influence the narrative surrounding Musk’s controversial acquisition and management of the social media platform.
Resources:
2.https://www.theregister.com/2024/08/12/twitters_former_chairman_sues_x/
3.https://asianlite.com/2024/top-news/former-twitter-board-member-sues-musks-x-for-20m/