Elon Musk's X sued by ex-chairperson for $20M in shares
What's the story
Omid Kordestani, former Chairperson of X, has initiated legal proceedings against the company. The lawsuit, filed in the California Superior Court in San Francisco, alleges that Elon Musk is refusing to liquidate more than $20 million worth of shares owed to Kordestani. The ex-chairman served at the firm from 2015 to 2020, and remained on the board for an additional two years until Musk's acquisition.
Unpaid shares
Kordestani's compensation and X's alleged refusal
The lawsuit details that a significant portion of Kordestani's remuneration was in the form of stock. He alleges that Musk is now refusing to liquidate these shares. The legal team representing the former chairman contends that X Corp, renamed by Musk post-acquisition, is trying to "reap the benefits of Mr. Kordestani's seven years of service to Twitter without paying him for it."
Legal troubles
Musk faces multiple lawsuits from former executives
This lawsuit is the latest in a series of legal actions taken against Musk, by former X executives since his takeover. In March, four ex-executives sued Musk for allegedly withholding more than $128 million in severance payments, following their departure from the company. X has declined to comment on these allegations.