Ex-Twitter CEO sues over unpaid legal fees, DOJ investigation cites

Twitter’s ex-CEO Parag Agrawal and two other former executives accused the social media company in a lawsuit Monday of failing to reimburse them for more than $1 million in legal fees.

Driving the news: Agrawal, former Twitter chief legal officer Vijaya Gadde and former CFO Ned Segal, who was fired after Elon Musk took over the platform, allege the company “refused to acknowledge its obligations and to pay any invoices,” according to the filing.

  • This includes advisers the executives said they used while at Twitter to respond to investigations by the Justice Department and the Securities and Exchange Commission, according to the lawsuit filed in Delaware Chancery Court.
  • “This action seeks an expedited decision requiring defendants to comply with their obligations to advance attorneys̵[ads1]7; fees and expenses related to ongoing litigation and investigations,” the filing states.

The intrigue: It was not immediately clear what the federal investigations were about, and the DOJ and SEC did not immediately respond to Axios’ request for comment.

The big picture: The executive lawsuit adds to the legal headache for Twitter since Musk completed its $44 billion acquisition last October of the company, which is being sued by former employees over their terminations after the takeover.

  • The Federal Trade Commission has asked Twitter for information about the layoffs. The FTC is also looking into the company’s privacy practices, according to the New York Times, which obtained Monday’s filing.

  • Representatives for Twitter did not immediately respond to Axios’ request for comment.

Flashback: The DOJ assisted the FTC in a case last May before Musk took over the platform in which Twitter agreed to pay $150 million to use users’ security data to target ads.

Worth nothing: Gadde was one of several former Twitter executives who testified before Congress in February about content moderation on the platform.

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