Elon Musk faces a lawsuit from four former Twitter executives, including ex-CEO Parag Agrawal, claiming over $128 million in unpaid severance. Filed in federal court in San Francisco, the legal action adds to a string of challenges for Musk following his acquisition of the social media platform for $44 billion in October 2022, subsequently rebranding it as X. The other plaintiffs named in the lawsuit are Ned Segal, former CFO of Twitter; Vijaya Gadde, former chief legal officer; and Sean Edgett, former general counsel.
Moments after Musk assumed control of Twitter, the former executives allege they were terminated, with Musk falsely alleging misconduct and pushing them out after they sued him for attempting to backtrack on his offer to buy the company. The lawsuit claims that Musk subsequently denied the promised severance pay to the executives, which they had been entitled to for years prior to his acquisition of Twitter. According to the plaintiffs, each of them is owed a year’s salary and hundreds of thousands of stock options.
In the 39-page lawsuit, the former executives describe this pattern as typical of Musk: withholding owed money and forcing legal action to retrieve it.
X is currently confronted with two proposed class-action lawsuits, asserting it owes laid-off employees at least $500 million in severance pay following Musk’s takeover, along with a separate lawsuit by six former senior managers making similar allegations.
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