By Aaron Miller-
Four former executives have filed a lawsuit against both the company and its owner, Elon Musk, seeking over $128 million in unpaid severance.
This lawsuit marks the latest development in a series of legal battles that have plagued the social media platform since Musk’s contentious acquisition and subsequent mass layoffs.
The plaintiffs—former Chief Executive Officer Parag Agrawal, Chief Financial Officer Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sean Edgett—allege that Musk intentionally withheld their severance entitlements after abruptly terminating their employment upon assuming control of Twitter/X in October 2022.
According to the lawsuit filed in a California federal court on Monday, the executives claim that their dismissals were retaliatory in nature, stemming from their steadfast representation of Twitter’s public shareholders during Musk’s attempted withdrawal from the acquisition deal.
The lawsuit paints a picture of simmering animosity between Musk and the plaintiffs, citing his reported vow of “a lifetime of revenge” against those who opposed his efforts to renege on the acquisition agreement.
Musk had initially agreed to purchase Twitter/X for approximately $44 billion in April 2022, a deal that faced legal challenges from the company itself when Musk attempted to back out months later. Despite the sale eventually proceeding, tensions evidently persisted, particularly directed towards the executives who resisted Musk’s maneuvers.
Quoting from Musk’s authorized biography, the plaintiffs’ complaint highlights his alleged determination to pursue the former executives relentlessly.
The lawsuit further accuses Musk of terminating the executives without valid cause and fabricating allegations of “gross negligence” and “willful misconduct” to justify their dismissals.
The executives, each claiming contractual entitlements to substantial severance packages, are seeking redress for what they perceive as unjust treatment.
Agrawal, Segal, Gadde, and Edgett assert their rights to approximately $57.4 million, $44.5 million, $20 million, and $6.8 million in severance, respectively.