Elon Musk’s Lawsuit Against the X Platform: Omid Kordestani’s Allegations

Elon Musk’s Lawsuit Against X: Omid Kordestani’s Claims

Elon Musk’s X platform is being sued by former chairman Omid Kordestani, who claims that he has suffered more than $23 million in damages due to unpaid stock options. The lawsuit was filed last week in the California Superior Court in San Francisco and includes details of the $20 million worth of stock that the company allegedly owes to Kordestani, who was the former chairman of Twitter.

According to court documents, Kordestani started working for a significantly lower salary of $50,000, which was only 0.4% of his previous earnings, when he left his high-paying job at Google to join Twitter. However, it is claimed that in lieu of cash, he was granted performance-based stock options as compensation. The lawsuit alleges that these payments should have been made during the period when Musk bought the social media platform and dissolved the board, but these payments have not yet been made.

Kordestani joined Twitter in 2015 and served as chairman of the board until 2020. In early 2020, in an effort to resolve an activist action, he made significant changes to Twitter’s governance structure. Among these changes was the elimination of the role of chairman of the board. After these changes, Kordestani continued to work by taking on a different executive position within the company. In addition to these management changes, Twitter granted Kordestani Restricted Stock Units (RSUs).

Shortly thereafter, Twitter was purchased by Elon Musk for $44 billion. After this acquisition, Musk appointed himself as the sole member of the board. According to Kordestani’s lawsuit, he was to be paid $20.1 million for earned options, $2.7 million for performance-based restricted stock units (PSUs), and $246,122.20 worth of stock options for RSUs after the completion of the agreement. However, these payments have yet to be made.