Photo by Alexander Shatov on Unsplash
Former Twitter Executives Sue Elon Musk for $128 Million
March 5, 2024
A lawsuit has been filed against Elon Musk by a group of former Twitter employees, alleging that Musk owes the group from Twitter over $128 million in severance pay following his acquisition of the social media company dating back to 2022. The lawsuit claims that Elon Musk took over Twitter for $44 billion and, after rebranding it as X, he terminated the team of executives for cause to avoid paying them their contractual severance.
The lawsuit, which has been filed by former CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett, seeks to recover various amounts of severance for each individual totaling $128 million. The plaintiffs accuse Musk, along with X Corp. and others, of failing to fulfill their severance obligations, alleging that Musk’s actions demonstrate a disregard for rules and an abuse of power.
The acquisition of Twitter by Musk’s ownership group was finalized on Oct. 28, 2022, after facing various obstacles and threats of termination due to concerns about bot accounts. Following the acquisition, Musk terminated Agrawal, Gadde, and other key leaders, citing perceived infringements on free speech.
The lawsuit alleges that Musk improperly cited cause for termination in order to avoid paying severance benefits, and instead appointed employees from his own companies to support his decisions. The former executives claim that X has unjustly withheld documents and prolonged the process, using delay tactics characteristic of Musk’s management style.
As of now, X has not responded to requests for comment on the matter. This lawsuit highlights the tensions surrounding Musk’s acquisitions and his management style and raises questions about accountability and fairness in corporate governance. It also sheds light on the complexities of severance agreements and the legal responsibilities of acquiring companies toward their employees.
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