Former Twitter Board Member Sues X For $20 Million Over Unpaid Shares

Elon Musk’s social media platform X, previously known as Twitter, is facing a $20 million lawsuit from Omid Kordestani, a former executive chairman of the company.

The legal action, filed in California Superior Court in San Francisco, alleges that Musk has failed to honor a payment for shares that Kordestani claims are rightfully his.

Kordestani, who served on Twitter’s board starting in 2015 and oversaw the company’s acquisition by Musk in October 2022, asserts that he received most of his compensation through stock options.

Despite this, the lawsuit contends that Musk has refused to cash out the shares, leaving Kordestani with significant unpaid compensation.

The complaint accuses the platform of benefiting from Kordestani’s extensive service without compensating him for it, suggesting that the failure to fulfill these financial obligations is part of a broader pattern of unpaid dues under Musk’s leadership.

This lawsuit adds to a growing list of legal challenges faced by Musk’s platform.

Previously, former Twitter CEO Parag Agrawal, along with ex-chief financial officer Ned Segal, former head of legal and policy Vijaya Gadde, and former General Counsel Sean Edgett, filed a separate suit seeking approximately $128 million in severance payments.

They claim that Musk’s public vow to withhold their severance when he acquired the company for $44 billion in 2022 was an act of special ire against them.

As of now, neither Musk nor X have issued statements regarding the latest lawsuit.

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