Former Twitter Executive Chairman Initiates $20 Million Lawsuit Against X Corp
Omid Kordestani, who held the position of executive chairman at Twitter from 2015 until 2020 and was part of the board until Elon Musk’s acquisition in 2022, has filed a lawsuit against X Corp alleging they owe him shares valued at $20 million. The suit was submitted on Friday to a California superior court.
Background of the Dispute
The legal action stems from Kordestani’s decision to leave a lucrative role at Google to join Twitter. While his compensation at Twitter totaled only $50,000—a substantial decrease from his previous earnings—the offer included stock options and both performance-based and restricted stock units designed to enhance his overall remuneration. These financial instruments were expected to be settled as part of Musk’s takeover when he restructured the board; however, according to Kordestani’s claim, X has yet to fulfill this obligation. The lawsuit argues that “X Corp is attempting to enjoy the advantages of Mr. Kordestani’s seven years of work for Twitter without providing due compensation as explicitly stated in their contract.”
The Broader Context: A Wave of Litigation
This lawsuit reflects a growing trend of legal actions following Musk’s takeover; numerous former employees have come forward with claims asserting that they weren’t compensated appropriately after being terminated or laid off. Earlier this year, some ex-employees alleged wrongful termination without justification and sought millions in unpaid severance pay. The latest filing emphasizes that “Mr. Kordestani represents just one among many former employees whose earnings have been improperly withheld by X Corp since Elon Musk acquired the organization in October 2022.”
This situation raises significant questions about employee rights and corporate responsibility during transitional leadership phases within major technology firms.
This article originally appeared on Engadget.
