Key Points
Tuesday persuaded Delaware Chancery Court Judge Kathaleen St J McCormick that Twitter violated its duties to cover legal expenses generated by their work for the company...
Musk has faced a raft of lawsuits over his failure to pay Twitter vendors for things such as rent and consulting fees.. Company officials didnt immediately return an email for comment Tuesday on McCormicks ruling..
The company has paid about $600,000 of what it owes, but has withheld $1,158,427 in fees for lawyers work representing the former top managers in a congressional inquiry into the influence of social media on US elections, which required Gadde to appear before the House Committee on Oversight and Reform, according to legal filings...
Michael Blanchard, one of the companys lawyers, said X officials got sticker shock when they got the bill from Gaddes lawyers, which they found to be quite excessive.. Blanchard said the fees werent for litigation thats going to go for several years, but instead were for one-day of testimony..
After hearing arguments, McCormick noted Delaware courts lean in favor of granting executives request to have legal fees covered when tied to their actions on behalf of companies..
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