Lawsuit Alleges Unpaid Severance by Elon Musk

Four former Twitter executives, ousted following Elon Musk’s acquisition of the company in 2022, have filed a lawsuit against him, claiming unpaid severance totaling $128 million.

Plaintiffs and Lawsuit Details

The federal lawsuit, filed in California and obtained by Business Insider, includes former CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett as plaintiffs. The dispute, ongoing for over a year, revolves around severance payments after Musk asserted that the executives were terminated for cause and not entitled to severance.

Musk’s Alleged Strategy

The lawsuit characterizes Musk’s approach as withholding owed payments and compelling individuals to litigate against him. Despite Musk’s stance, the plaintiffs seek redress through legal action. As of now, there has been no immediate response from Musk’s attorney.

Previous Severance-Related Litigation

This lawsuit is not the first instance of severance-related legal action involving Musk and X (formerly Twitter). Settlement discussions regarding a proposed $500 million class action lawsuit over unpaid severance failed to conclude last month. Additionally, six former senior managers are pursuing severance pay claims against the company.

Additional Legal Action Against Twitter

Agrawal, Segal, and Gadde previously sued Twitter in August, seeking over $1 million in unpaid legal fees associated with separation procedures.

Scene from Musk’s Biography

The lawsuit draws from Walter Isaacson’s biography of Musk, depicting a scenario where Musk expeditiously finalizes the acquisition to terminate Agrawal and other top executives before their stock options vest. Agrawal’s termination followed contentious disputes with Musk over issues such as bots.