In a significant legal confrontation, Elon Musk finds himself at the center of a $128 million lawsuit filed by four former senior executives of Twitter, the platform he acquired and subsequently rebranded as X. The plaintiffs, including former Twitter CEO Parag Agrawal, allege Musk reneged on severance payments due to them, marking a contentious chapter in the aftermath of Musk's takeover.
The lawsuit, filed in a federal court in San Francisco, paints a picture of abrupt dismissals and unfulfilled financial obligations. The former executives—Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett—argue that Musk's actions post-acquisition were not only without just cause but also fabricated to deny them the severance and benefits promised under pre-existing agreements.
Detailing the financial stakes, the complaint specifies the severance owed: Agrawal is purportedly due over $57 million, Segal more than $44 million, Gadde upwards of $20 million, and Edgett over $6 million, amounts that encompass a year's salary and stock options as per the company's severance plan established years prior to Musk's takeover.
The plaintiffs accuse Musk of labelling them with 'gross negligence' and 'willful misconduct' charges in their termination letters, claims they argue were made without any substantiated evidence. This lawsuit joins a series of legal challenges Musk has faced since his acquisition, including allegations of failing to provide severance to laid-off workers and defaulting on rent payments for various properties.
Representatives for X, the entity formerly known as Twitter, had not responded to requests for comment at the time of the report. This legal battle underscores the tumultuous transition period for the social media company under Musk's leadership, highlighting disputes over contractual obligations and the broader implications for corporate governance and employee rights in the tech industry.
As the lawsuit progresses, it represents a crucial test case for the obligations of corporate owners to uphold agreements made prior to their tenure, set against the backdrop of Musk's high-profile and often controversial management style. This ongoing saga not only captivates the attention of the tech and legal communities but also signals a warning for executives navigating the volatile landscape of Silicon Valley acquisitions.