Former Twitter Chairman Sues Elon Musk's X for $20 Million

Omid Kordestani Alleges Breach of Contract

August 9, 2024 at 5:11 PM PDT

Former Twitter Chairman Omid Kordestani has filed a lawsuit against the social media company owned by Elon Musk. The lawsuit, filed in Delaware Chancery Court, alleges breach of contract and seeks $20 million in damages.

Kordestani, who served as Twitter's executive chairman from 2015 to 2020, alleges that Musk breached an agreement to pay him $20 million in shares of Twitter stock when he acquired the company in October 2022.

The lawsuit is the latest in a series of legal challenges to Musk's ownership of Twitter. Former Twitter CEO Jack Dorsey has also sued Musk, alleging that Musk breached the terms of his severance agreement.

The lawsuits highlight the challenges Musk faces as he attempts to turn around Twitter's struggling business. Twitter has been losing money for years, and Musk has already laid off half of the company's workforce.

It remains to be seen how the lawsuits will affect Twitter's future. However, they are sure to cast a shadow over Musk's ownership of the company.