A former high-ranking executive at the now-rebranded Twitter has initiated a legal action alleging wrongful termination. The executive contends that the dismissal occurred due to objections raised against budget reductions proposed by Elon Musk following his acquisition of the company.
(Photo : SAMANTHA LAUREY/AFP via Getty Images)
The Twitter Headquarters in San Francisco, California on November 4, 2022.
Raising Security Concers
Former global head of information security at Twitter Alan Rosa has initiated legal proceedings against X, Elon Musk, and company adviser Steve Davis, asserting that his termination was unjustified due to his opposition to Musk-led cost-cutting initiatives.
The Verge reported that these measures negatively impacted Twitter's capacity to adhere to regulatory requirements outlined by the Federal Trade Commission (FTC) and the European Commission.
Musk enlisted Steve Davis as an adviser with significant authority, leading to the immediate reduction of Twitter's products and services that were previously aligned with and compliant with the Twitter FTC Consent Decree.
The latter resulted from Twitter's recent settlement with the FTC concerning the improper use of users' personal information. Rosa's complaint alleges that both Davis and Musk displayed a "dismissive" stance towards the decree.
Rosa asserts that in the latter part of the previous year, following Musk's acquisition of the company, he received instructions to slash his department's physical security budget by half and to deactivate software facilitating Twitter's information sharing with global law enforcement agencies.
Also Read: Twitter's Former CEO Parag Agrawal Sues Company Over Unpaid Legal Bills, Citing DOJ Probe
Expressing his objection, Rosa contends that these cuts would expose Twitter to the possibility of breaching a $150 million settlement it reached in 2022 with the US Federal Trade Commission (FTC).
The settlement, prompted by allegations of Twitter's misuse of users' personal information, mandated the implementation of privacy and information security controls to safeguard confidential data.
Days after voicing these concerns, as per the legal complaint, Rosa was terminated. He is now pursuing unspecified compensatory and punitive damages along with coverage for legal fees.
Facing Several Lawsuits
Since Musk's acquisition of the company, The Guardian reported that X Corp has faced a barrage of lawsuits from former employees and executives, who were part of the workforce reduction that saw more than half of the employees laid off as a cost-cutting measure.
Shortly prior to Rosa's dismissal, Musk conducted widespread layoffs, triggering an immediate legal action and marking the initial wave of the advertising downturn during the Musk era.
With finances dwindling, Musk attempted to implement further cost-cutting measures at Twitter, including unconventional approaches like selling off assets or neglecting rental payments.
Following the coercion of former employees to forgo their wrongful termination lawsuit and engage in arbitration, which Twitter was committed to covering the costs of, Musk's company ultimately reneged on this obligation, leading to yet another lawsuit.
Rosa's legal action draws on similar justifications as the aforementioned lawsuit, referencing it as a precedent.
These legal actions encompass various allegations and claims that X Corp neglected to provide advance notice of widespread layoffs. X Corp has consistently denied any wrongdoing in response to these legal challenges.
Related Article: Twitter's Head of Trust and Safety Resigns Only a Year After Joining the Company
