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Omid Kordestani Sues X Corp Over Unpaid Shares

Omid Kordestani, who held the position of executive chairman at Twitter from 2015 until 2020 and was a board member until Elon Musk’s acquisition in 2022, has initiated legal action against X Corp for the equivalent of $20 million in shares that he claims the company has not compensated him for. The lawsuit was filed on Friday in a California superior court.

According to the legal documents, Kordestani made the decision to leave a lucrative role at Google to join Twitter, accepting a notably reduced salary of $50,000. However, to make the offer more appealing, Twitter included stock options, performance-based restricted stock units, and additional restricted stock units as part of his compensation package. The total value of these shares is stated to be $20,112,000, which Kordestani expected to receive upon Musk’s acquisition of Twitter and subsequent replacement of the board. The lawsuit asserts that X has neglectfully failed to honor this agreement: “X Corp. seeks to reap the benefits of Mr. Kordestani’s seven years of service to Twitter without paying him for it, despite clear contractual language requiring X Corp. to do so,” it states.

This lawsuit is not an isolated incident, as numerous complaints have emerged post-Musk’s takeover of Twitter regarding employee compensation. Other former employees allege they were not compensated appropriately following layoffs or terminations. Earlier this year, several ex-executives filed their own lawsuits against Musk and X Corp, contending they were dismissed “without reason” and are owed significant amounts in unpaid severance. Kordestani’s suit emphasizes that he is among many former employees whose earnings have been improperly withheld by X Corp following Musk’s acquisition of the company in October 2022.

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www.engadget.com