Tech
Omid Kordestani Sues Twitter Over $20 Million in Unpaid Shares
Omid Kordestani has filed a lawsuit against Twitter, claiming $20 million in unpaid shares. Explore the details of this legal battle and its implications for the social media giant in our comprehensive coverage.
Legal Battle: Omid Kordestani Sues Twitter Over Unpaid Shares
A former board member of Twitter, Omid Kordestani, has initiated legal proceedings against the social media giant, now rebranded as X under Elon Musk’s ownership. The lawsuit, filed on Friday, alleges that Musk has unjustly refused to cash out over $20 million worth of shares owed to Kordestani.
Kordestani, who joined Twitter’s board in 2015 and played a pivotal role in facilitating the company’s acquisition by Musk in 2022, primarily received his compensation in the form of stock. However, following Musk’s takeover, the lawsuit claims that the billionaire has failed to compensate Kordestani for these shares. According to the legal filing, X is attempting to “reap the benefits of Mr. Kordestani’s seven years of service to Twitter without fulfilling its financial obligations.”
The suit was lodged in the California Superior Court in San Francisco, and a spokesperson for X has yet to respond to requests for comments regarding the allegations.
This public dispute between Kordestani and the company he once helped guide is quite uncommon, as most conflicts within boardrooms tend to be resolved quietly. However, Musk’s controversial acquisition of Twitter for $44 billion has disrupted traditional business norms and led to a series of lawsuits concerning his management of the deal.
With this lawsuit, Kordestani stands out as the most senior leader from Twitter to take legal action against Musk, although he is not alone in his grievances. Other former high-ranking executives, including the company’s previous chief executive and chief financial officer, have also filed lawsuits against the company in an effort to reclaim unpaid compensation. Moreover, thousands of former employees have united in mass arbitration cases, accusing Musk of wrongful termination and failure to provide appropriate severance packages.
The former executives have alleged that Musk has withheld severance payments that should have been automatically disbursed upon the acquisition of the company. Following the takeover, Musk implemented substantial layoffs, resulting in thousands of job losses, while providing only minimal severance packages. The former employees contend that these amounts fall short of what their employment contracts entitle them to receive.