Omid Kordestani, who served as Twitter’s executive chairman from 2015 to 2020 and remained on the board until Elon Musk‘s acquisition in 2022, has filed a lawsuit against X for $20 million in shares he claims the company is refusing to pay.
Kordestani submitted the lawsuit on Friday in a California superior court.
According to the lawsuit, Kordestani left a lucrative position at Google to join Twitter, accepting a significantly lower salary of $50,000. However, he was promised stock options, performance-based restricted stock units, and restricted stock units totaling $20,112,000, which were supposed to be paid out upon Musk’s acquisition of Twitter and the subsequent board overhaul. The lawsuit states, “X Corp. seeks to reap the benefits of Mr. Kordestani’s seven years of service to Twitter without paying him for it, despite clear contractual language requiring X Corp. to do so.”
Ongoing Legal Issues Post-Acquisition
This lawsuit is part of a broader pattern of legal challenges following Musk’s acquisition of Twitter. Several former employees have filed lawsuits alleging improper payment practices after being laid off or terminated. Earlier this year, other former Twitter executives sued Musk and X, claiming they were dismissed “without reason” and are owed millions in unpaid severance. Kordestani’s lawsuit highlights that he is among many former Twitter employees experiencing similar issues with compensation being withheld by X Corp. since Musk’s takeover in October 2022.
As Kordestani seeks to recover the funds he believes are rightfully owed to him, the ongoing legal battles at X continue to reflect the tumultuous aftermath of Musk’s acquisition and the challenges faced by former employees of the platform.
Former Twitter Chairman Omid Kordestani sued the social media company, claiming that billionaire owner Elon Musk is refusing to cash out more than $20 million worth of shares he is owed https://t.co/r7IYzgYp6D
— Bloomberg (@business) August 10, 2024
