Omid Kordestani, former executive chairman of Twitter (now known as X), has filed a lawsuit against the social media platform, alleging that Elon Musk has refused to honour over $20 million worth of stock compensation owed to him. The lawsuit, filed in California Superior Court in San Francisco, adds to the growing list of financial disputes surrounding Musk's tumultuous takeover of Twitter.
According to the lawsuit, Kordestani received a significant portion of his compensation in the form of company stock. However, after Musk's acquisition of Twitter, the platform allegedly reneged on its obligation to pay out these shares.
The lawsuit contends that X "seeks to reap the benefits of Kordestani’s seven years of service to Twitter without paying him for it."
Kordestani's lawsuit further alleges that the refusal to honour his stock compensation is part of a broader pattern of unpaid bills under Musk's leadership.
The lawsuit states that the Musk-run platform "refuses to meet those obligations, adding to a long list of unpaid bills accruing under Musk’s watch."
This latest legal action follows a similar lawsuit filed by former Twitter CEO Parag Agrawal and three other executives, seeking approximately $128 million in unpaid severance. The lawsuit claimed that Musk displayed "special ire" towards these executives, publicly vowing to withhold their severance payments after acquiring Twitter.
The mounting legal challenges and allegations of unpaid debts highlight the financial turmoil surrounding Musk's ownership of Twitter. These disputes raise concerns about the platform's financial stability and its ability to meet its obligations to former employees and stakeholders.
As of the time of this report, neither Elon Musk nor X has issued a public statement regarding Kordestani's lawsuit.