Settlement Reached Between Elon Musk and Former Twitter Executives

Settlement reached by Elon Musk and his company X Corp with four former senior Twitter executives, including ex-CEO Parag Agrawal. They claimed they were denied $128 million in severance pay following Musk’s acquisition of the social media platform in 2022.

This settlement, confirmed in a federal court filing in San Francisco last week, concludes one of the most scrutinised disputes that arose after Musk’s $44 billion purchase of Twitter. The specific terms of the settlement remain undisclosed. A federal judge has deferred filing deadlines and a scheduled hearing on October 1 to allow the completion of the settlement process.

Details of the Plaintiffs

The individuals involved in this case are Agrawal, Ned Segal (previous Chief Financial Officer), Vijaya Gadde (previous Chief Legal Officer), and Sean Edgett (previous General Counsel). They argued that Musk wrongfully terminated their contracts without fulfilling severance and stock option payments.

Claims of Misconduct

The executives contended that Musk made false allegations of misconduct after they initiated legal action against him in 2022 for attempting to backtrack on his Twitter acquisition. Their lawsuit asserted that each was entitled to a full year’s salary, along with significant stock options that were retracted post-Musk’s takeover.

Response from X Corp and Musk

X Corp and Musk have denied any claims of wrongdoing, arguing that the executives’ dismissal was based on inadequate performance.

Related Legal Matters

This recent settlement follows another case from August, wherein X Corp resolved a different lawsuit filed by former Twitter employees. These individuals were laid off during Musk’s extensive workforce reduction and claimed they were owed $500 million in unpaid severance.

Since taking ownership of Twitter, Musk has encountered numerous legal and financial issues while rebranding the company as X, cutting more than half of its workforce, and implementing an aggressive strategy to transform the platform into an “everything app.”