In a recent development, four ex-Twitter executives, including former CEO Parag Agrawal, have filed a lawsuit against Elon Musk. The lawsuit, totaling over $128 million in unpaid severance, was lodged on Monday in federal court in San Francisco.
These executives claim that they were unfairly terminated just minutes after Musk acquired Twitter and rebranded it as “X.” Musk allegedly accused them of misconduct and ousted them from their positions after they sued him for trying to back out of his initial offer to purchase the company.
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. They assert that Musk denied them the severance pay they were promised for years prior to his acquisition of Twitter.
According to the lawsuit, each of the plaintiffs is owed one year’s salary along with hundreds of thousands of stock options. The former executives characterized Musk’s actions as part of his “playbook” to withhold owed funds and compel individuals to litigate against him.
This legal action adds to Musk’s growing list of legal challenges following his acquisition of Twitter for $44 billion in October 2022. X, as it’s now known, is already embroiled in two proposed class action lawsuits alleging it owes laid-off employees at least $500 million in severance pay. Additionally, six former senior managers have filed a separate lawsuit making similar claims.
X, however, has denied any wrongdoing. The company has previously faced lawsuits for non-payment to its former public relations firm, landlords, vendors, and consultants.
Despite requests for comment, X did not respond to inquiries from Reuters regarding the lawsuit and its ongoing legal battles.
This lawsuit underscores the complexities and tensions surrounding Elon Musk’s acquisition of Twitter and the subsequent fallout as former executives seek recourse for alleged breaches of contract and unpaid dues.
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