Elon Musk-led X Corp, formerly known as Twitter, was ordered by a judge to pay $1.1 million in legal fees to former CEO Parag Agrawal and other executives in link with the investigations during Elon Musk’s buyout of the platform last year.
Delaware Chancery Court Judge Kathaleen McCormick ruled in favour of Agrawal, former policy lead Vijaya Gadde, and other executives, as Twitter “violated its duties to cover legal expenses generated by their work for the company.”
The group of executives sued Twitter this April over unpaid legal bills worth $11,58,427 in lawyers’ fees for representing the former executives in a congressional inquiry, including Gaddes’ appearance before the House Committee on Oversight and Reform.
Their lawyers informed the Chancery Judge that Twitter has only paid $6,00,000 of the amount owed and failed to cover the legal expenses generated by their work for the company tied to investigations of the platform’s operations.
After hearing the arguments, Judge McCormick ruled in favour of the executives and didn’t see any reason to deviate from the norm in the case.