Omid Kordestani, the former chairman of Twitter, has filed a lawsuit against the social media company, claiming that owner Elon Musk is withholding over $20 million worth of shares owed to him.
As per multiple outlets, the legal action, initiated in California Superior Court in San Francisco, marks another legal challenge Musk faces from former Twitter executives.
Kordestani, who served as Twitter's executive chairman from 2015 to 2020 and continued on the board until Musk's $44 billion acquisition of the platform, argues that his primary compensation was in stock.
His lawyers allege that X Corp.(formerly Twitter), the company’s new name under Musk’s ownership, is refusing to honor these stock payments.
The complaint states that X Corp. aims to "reap the benefits of Mr. Kordestani's seven years of service to Twitter without paying him for it."
This lawsuit follows a similar pattern of legal disputes against Musk. In March, four former Twitter executives filed a lawsuit against him, alleging that he withheld more than $128 million in severance payments following their removal from the company.
Before joining Twitter, Kordestani was a prominent business leader at Alphabet Inc.'s Google.
However, X Corp. has declined to comment on the ongoing legal matter.
