Elon Musk has agreed to settle a lawsuit filed by four former Twitter executives—Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett—over unpaid severance packages totaling $128 million.
The executives alleged they were wrongfully terminated for cause immediately after Musk’s $44 billion acquisition of Twitter in October 2022, which voided their severance entitlements.
They contended that the dismissals were retaliatory actions following their involvement in a lawsuit against Musk when he attempted to back out of the acquisition deal.
The lawsuit also referenced a claim in Musk’s biography suggesting he deliberately timed the acquisition to terminate the executives before their stock options vested.
The settlement, filed in a California federal court, is conditional upon certain terms being met in the near term.
A judge has postponed deadlines to allow the parties time to finalize the arrangements.
Musk and X Corp have denied any wrongdoing, maintaining that the executives were dismissed for performance-related reasons.
This legal dispute is part of a series of challenges Musk has faced since acquiring Twitter, now rebranded as X.
In August, X Corp agreed to settle a separate class-action lawsuit involving approximately 6,000 laid-off employees who claimed they were denied severance payments.
Additionally, Musk is currently involved in a lawsuit with the U.S. Securities and Exchange Commission (SEC) over alleged securities law violations related to his share purchases.
The settlement with the former executives marks a significant development in the ongoing legal and operational challenges Musk has encountered since taking control of Twitter.
As the terms of the settlement are finalized, it remains to be seen how this resolution will impact Musk’s broader business endeavors and the future direction of X Corp.
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