TLDR
- Elon Musk and X Corp reached a settlement with four former Twitter executives who claimed they were denied $128 million in severance pay
- The executives include former CEO Parag Agrawal, CFO Ned Segal, legal chief Vijaya Gadde, and general counsel Sean Edgett
- The former executives alleged Musk wrongly accused them of misconduct to avoid paying severance that included one year’s salary and stock options
- Settlement terms were not disclosed publicly and the case was announced in a San Francisco federal court filing
- This is one of multiple legal disputes Musk has faced since acquiring Twitter for $44 billion in 2022
Elon Musk and X Corp have settled a lawsuit with four former top Twitter executives over unpaid severance. The settlement was announced in a filing in San Francisco federal court last week.
The plaintiffs are former CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett. They filed the lawsuit claiming they were owed $128 million in severance pay.
The executives said they were fired after Musk took control of Twitter in 2022. They alleged Musk wrongly accused them of misconduct to justify denying their severance payments.
According to their complaint, the severance package included one year’s salary and stock options. These benefits had been promised before Musk’s acquisition of the company.
Musk and X Corp denied any wrongdoing in the case. They argued the executives were dismissed for poor performance.
The terms of the settlement have not been made public. Neither party has disclosed the financial details of the agreement.
Settlement Follows Previous Case
This case is one of several legal disputes Musk has faced since buying Twitter. In August, X settled a separate lawsuit brought by former Twitter employees.
That lawsuit involved $500 million in severance claims. Former workers alleged they were owed two months of basic salary plus one week of pay for each year of service under a 2019 plan.
Many employees received only one month of pay or nothing at all. The company settled that case before it went to trial.
Changes After Acquisition
Musk acquired Twitter for $44 billion in October 2022. He laid off more than half the workforce shortly after taking control.
The platform was rebranded as X following the acquisition. The layoffs were part of cost-cutting measures implemented by Musk.
Last week, a federal judge rejected Musk’s attempt to move an SEC lawsuit to Texas. The case involves allegations of late disclosure of his Twitter stake.
