Another former Twitter/X executive is suing Elon Musk for millions in unpaid damages | Trending Viral hub

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Another day, another lawsuit for unpaid dismissal against Twitter/X and Elon Musk. Former Twitter executive Nick Caldwell is suing the social media platform for approximately $19.3 million in withheld royalties, joining a series of similar claims that have arisen since Musk took office in 2022.

Filed in a California district court on Wednesday, the lawsuit claims that Caldwell resigned from his former role as Twitter’s CEO of core technologies on October 22, 2022, just days before. Musk officially took the reins as its new owner. At the time, Twitter’s layoff policy stated that executives like Caldwell were entitled to severance packages if they resigned for “good reason” or were fired without cause.

Caldwell maintains that his resignation met this requirement because Twitter’s privatization meant he would no longer report directly to the CEO of a publicly traded company. Such a circumstance was specifically listed as a “material adverse change” and a “good reason” to resign under the company’s termination policy. Twitter was officially delisted from the New York Stock Exchange on October 28.

In response to Caldwell’s resignation, Twitter/X reportedly told him it would serve his notice period until Nov. 27, but did not provide his standard separation agreement despite repeated requests. Musk subsequently fired Caldwell on November 27, firing him for alleged “failure to comply with the Company’s written rules or policies, including its code of conduct,” as well as for “gross negligence or willful misconduct in the performance of (his) homework”. “

This meant that, in Musk’s opinion, Caldwell had been fired for cause and was therefore no longer entitled to his $19.3 million severance package. Caldwell disputes this, stating that he resigned for “good reasons” before apparently being fired, and that Twitter/X did not provide any facts or evidence to substantiate his accusations against him.

“It is telling that Musk’s termination letter, like those of the other executives, did not include any facts that demonstrated any misconduct or grounds for termination for ‘Cause,'” the lawsuit reads (emphasis in original). “With no factual basis, Musk simply accused Mr. Caldwell of misconduct as a ploy to evade payment of millions of dollars in severance pay that Musk/Twitter “I owe to Mr. Caldwell.”

In addition to his $19.3 million severance pay rights, Caldwell is seeking interest, attorneys’ fees and nearly $490,000 for the value of restricted stock units that Twitter/X should have acquired when his employment ended.

Twitter/X and Musk have been accused of withholding compensation from more than 2,000 people

This is far from the only case of unpaid damages affecting Twitter/X. The company has been inundated by an avalanche of compensation claims since Musk’s acquisition in late 2022, and the billionaire fired approximately 80 percent of its staff. Last September the company agreed to talks to reach an agreement with approximately 2,000 former employees, all of whom have accused Twitter/X of withholding their rights.

Caldwell isn’t even the only former Twitter/X executive seeking millions in damages. In a similar lawsuit filed last month, former Twitter/X CEO Parag Agrawal, Chief Financial Officer Ned Segal, Chief Legal Officer Vijaya Gadde and General Counsel Sean Edgett accused the company of withholding a combined total of more than $128 million in unpaid compensation. Like Caldwell, these former executives also accused Musk of making up reasons to fire them to avoid paying their rights.

“Because Musk decided he did not want to pay plaintiffs’ severance payments, he simply fired them without cause, then fabricated a false cause and appointed employees from his various companies to defend his decision,” the plaintiff’s complaint reads. “He stated in his termination letters that each plaintiff committed ‘gross negligence’ and ‘willful misconduct’ without citing a single fact in support of this claim.”

Basically, there seem to be two possibilities. Or the entire Twitter/X executive suite was engaging in gross negligence and willful misconduct, egregious behavior that went completely unnoticed until Musk realized it within hours of taking over the company. Or was Musk attempting a clumsy, ill-conceived plan to stop the hemorrhaging of money in a $44 Billion Acquisition You Didn’t Want but it was legally obligated to move forward with.



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