(Bloomberg) — Twitter Inc.’s former chief government officer revealed that the US Justice Division seemed into the social-media platform as he and different executives sought to drive the corporate to cowl their authorized charges associated to lawsuits and authorities investigations.
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Parag Agrawal, who was ousted final 12 months by new proprietor Elon Musk, and different former executives stated in a Delaware Chancery Court docket lawsuit they’ve spent greater than $1 million on legal professionals in reference to the probes and shareholder lawsuits over their administration of the agency.
Agrawal stated within the criticism his lawyer was contacted by representatives of the Justice Division late in 2022 “concerning sure investigations associated to the corporate.” He didn’t elaborate. The New York Instances had reported on the lawsuit earlier.
Musk had been contacted earlier in 2022 by the US Securities Fee and the Federal Commerce Fee over his preliminary disclosure of buying a significant stake in Twitter. The billionaire’s legal professionals sought to restrict disclosures of the contacts with the federal government, citing confidentiality guidelines round communications with attorneys.
Twitter’s former managers declare of their swimsuit that their legal professionals have despatched repeated letters to Twitter’s attorneys outlining the authorized bills they’ve racked up, however the firm is violating its personal bylaws by “refusing to advance” cash to cowl their bills, in response to the 20-page criticism filed Monday.
Representatives of San Francisco-based Twitter didn’t reply to an e mail looking for touch upon the swimsuit. Different executives demanding Twitter advance authorized charges to them embody Vijaya Gadde, its former high lawyer and Ned Segal, Twitter’ onetime chief monetary officer
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Twitter is dealing with a number of investor fits over the fallout from Musk’s buy of the platform for $44 billion final 12 months after his failed effort to get out of the deal.
The case is Agrawal v. Twitter Inc., No. 2023-0409, Delaware Chancery Court docket (Wilmington)
(Corrects that former executives incurred $1 million in charges in whole in second paragraph.)
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