Former Twitter Chairman Sues X (Owned by Elon Musk) for Stock Compensation

On August 10 Beijing time, which was Friday local time, former Twitter chairman Omid Kordestani sued the social media company owned by Elon Musk (which has since been renamed X), claiming that Musk refused to honor stocks worth more than 20 million US dollars (about 140 million Chinese yuan).

Kordestani joined the Twitter board in 2015 and served as the executive chairman and assisted in overseeing the transaction of Twitter being sold to Musk in 2022. Most of his compensation was in the form of stocks. But the lawsuit shows that after Musk acquired Twitter, he refused to pay these stocks to Kordestani.

When Musk acquired Twitter, Kordestani held 800,000 stock options worth more than 20 million US dollars. According to the acquisition agreement signed by Musk, these options should be paid within five days after the completion of the transaction. According to the lawsuit, as a former board member, he also received additional stock compensation that should be paid within a few months after the acquisition, worth nearly 3 million US dollars. The lawsuit points out that Musk's acquisition agreement stipulates that these stocks should also be paid, but it has not been implemented.

The X company tries to enjoy the benefits that Kordestani has brought to Twitter for seven years, but is unwilling to pay for it. The lawsuit said. The lawsuit was filed with the California Superior Court in San Francisco.

As of the time of writing, X has not commented. Previously, the former Twitter CEO, CFO, and top lawyer also sued the company, demanding compensation. Thousands of employees joined a large-scale arbitration case, accusing Musk of wrongly dismissing them and refusing to pay the appropriate severance pay.