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Ex-Twitter Leaders Sue Elon Musk And X for $128 Million In Severance

By Nithya Bose in US business news, posted March 5, 2024

Former Twitter executives have sued Elon Musk and X, claiming they are owed $128 million in unpaid severance.

The plaintiffs are ex-CEO Parag Agrawal, former CFO Ned Segal, former legal head Vijaya Gadde, and former General Counsel Sean Edgett.

The legal action, filed in a federal court, stems from allegations against Musk following his acquisition of Twitter, now rebranded as X Corp., for $44 billion.

The plaintiffs accuse Musk of personally targeting them in a vindictive manner and attempting to offset his purchase costs by neglecting to fulfill various contractual obligations.

The legal filing accuses Musk and X of defaulting on payments to employees, landlords, service providers, and others since taking control of Twitter.

This claim references over 25 lawsuits for unpaid bills filed by vendors, including those for software, services, and real estate.

The plaintiffs' document also criticizes Musk for his alleged refusal to adhere to financial commitments.

“Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him"

It portrays him as someone who disregards standard rules due to his wealth and influence.

It says: “Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him."

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This criticism is further bolstered by references to Musk's ominous statements to his biographer, Walter Isaacson, where he expressed intentions to pursue Twitter's executives indefinitely.

He said “he would ‘hunt every single one of’ Twitter’s executives and directors ‘till the day they die.’”

The lawsuit highlights Musk's purported admissions of planning to deprive Twitter's former executives of their severance benefits as a cost-saving measure.

This legal battle, titled Agrawal et al v. Musk et al, takes place in the Northern District of California.

It follows the collapse of settlement discussions in another case in Delaware, Woodfield v. Twitter Inc., concerning an additional $500 million in unsettled severance for former Twitter staff.

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