In a new lawsuit filed Monday, Twitter’s ex-CEO Parag Agrawal and two other former executives claimed that the social media company failed to compensate them for over $1 million in legal expenses.

Agrawal, former Twitter chief legal officer Vijaya Gadde and ex-chief financial officer Ned Segal, who were fired after Elon Musk took over the platform assert that the company “refused to acknowledge its obligations and to remit payment of any invoices,” per the filing.

New Lawsuit After Twitter Buy

It was not immediately clear what the federal investigations were but the SEC has been investigating Musk’s April 2022 disclosure of an ownership stake in Twitter, which came ahead of his agreement to buy the company.

The new lawsuit adds to the legal headaches for Twitter since Musk completed his $44 billion acquisition last October of the company, which is being sued by former employees over their terminations following the takeover.

The Federal Trade Commission has asked Twitter for information about the layoffs. According to the New York Times, the FTC is also looking into the company’s privacy practices.

To recall, the DOJ assisted the FTC in a case last May before Musk took over the platform in which Twitter agreed to pay $150 million for using users’ security data to target ads.

It should be noted that Gadde was one of several former Twitter executives to testify before Congress in February about content moderation on the platform.

Previous Lawsuit

Before this new lawsuit, in January, landlords took Twitter to court over unpaid rent, at the social media company’s headquarters in San Francisco and its British offices. For some, it was a sign that owner Elon Musk’s extreme cost-cutting strategy includes simply not paying the bills.

As chief executive, Musk was slashing costs after his $44-billion deal last year to buy Twitter left the company on the hook for about $1 billion in annual interest payments.

Will there be more headaches to come for the beleaguered Musk?

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