Musk’s X Resolves $128M Severance Lawsuit with Former Twitter Executives
In a significant development, Elon Musk and X Corp have settled a lawsuit initiated by four former executives of Twitter. This group, which includes former CEO Parag Agrawal, claimed they were denied $128 million in severance payments following Musk’s acquisition of the company. The settlement details were not disclosed, but it was first revealed in a San Francisco federal court filing.
Background of the Lawsuit
The lawsuit arose after Musk’s takeover of Twitter for $44 billion in 2022. Following the acquisition, Musk terminated over half of the workforce and rebranded the platform as X. The plaintiffs in this case argue they were wrongfully dismissed and deprived of their severance compensation.
Details of the Settlement
A federal judge delayed filing deadlines and hearings on October 1, allowing additional time for the settlement to be finalized. While X Corp and the plaintiffs have not made official comments yet, this resolution is a step toward closing this chapter in the ongoing legal battles faced by Musk.
Executives Involved
- Parag Agrawal – Former CEO
- Ned Segal – Former Chief Financial Officer
- Vijaya Gadde – Former Chief Legal Officer
- Sean Edgett – Former General Counsel
The executives have claimed they were wrongfully accused of misconduct and removed from their positions after raising concerns about the acquisition process. They stated they were owed severance equivalent to one year’s salary, along with substantial stock options.
Additional Legal Challenges
This lawsuit is not the only legal hurdle for Musk. In August, X Corp agreed to another settlement related to claims from regular employees who lost their jobs during mass layoffs. They alleged they were owed $500 million in unpaid severance.
Musk and the executives’ attorneys have maintained that dismissals were based on performance issues, denying any wrongdoing with respect to the severance claims.
Conclusion
The resolution of this lawsuit contributes to the ongoing narrative surrounding Musk’s controversial management of X Corp. As the legal landscape unfolds, it remains clear that the consequences of corporate actions in the wake of high-stakes acquisitions are under scrutiny on multiple fronts.
