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| (Photo credit: bbc.com) |
According to a report from Bloomberg, a judge has ordered X, the website formerly known as Twitter, to pay $1.1 million in legal fees associated with inquiries made during Elon Musk's purchase of the website last year.
Judge Kathaleen St. J. McCormick of the Delaware Chancery Court found in favor of former Twitter CEO Parag Agrawal, former chief policy officer Vijaya Gadde, and other officials, finding that Twitter had breached its obligations by refusing to pay the legal costs incurred while they were employed by the business.
Agrawal and other senior executives were sacked by Elon Musk after he bought the business. Twitter responded by suing Musk for trying to break his commitment to the $44 billion acquisition. Agrawal and Gadde filed a complaint in April claiming that the company had failed to pay their legal bills, including bills for Gadde's appearance before the House Committee on Oversight and Reform.
Bloomberg reports that X has only paid around $600,000 of the owed amount, with company representatives expressing surprise at the "quite excessive" $1.1 million legal bill from Gadde's lawyers, stating that they experienced "sticker shock."
Although Judge McCormick acknowledged that $1.1 million is a sizable sum, she still ruled in favor of the former Twitter executives, stating that the amount, while high, was not unreasonable.
While this ruling resolves the issue of legal fees, it also sheds light on the legal complications and financial disputes that can arise during significant corporate transactions and changes in executive leadership.
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