Former Twitter Executives Demand $128 Million in Lawsuit Against Elon Musk and X Corp
In a stunning turn of events, four former Twitter executives have filed a lawsuit against Elon Musk and X Corp, demanding a staggering $128 million in severance and benefits. The quartet, consisting of former CEO Parag Agrawal, ex-CFO Ned Segal, former CLO Vijaya Gadde, and ex-General Counsel Sean Edgett, filed the complaint in federal court in northern California.
The lawsuit alleges that Musk fired the executives without reason and then fabricated cause to avoid paying their severance benefits. The complaint states, “Because Musk decided he didn’t want to pay Plaintiffs’ severance benefits, he simply fired them without reason, then made up fake cause and appointed employees of his various companies to uphold his decision.”
This legal action is just one of many lawsuits that have been filed against Musk and the social media platform formerly known as Twitter since Musk acquired the company for $44 billion in 2022. The executives claim that Musk’s modus operandi is to withhold money owed to others and force them to sue him. They argue that even in defeat, Musk can impose delay, hassle, and expense on those less able to afford it.
Represented by the law firm Sidley Austin, the former tech lords are using Musk’s own words against him. They cite a statement made by Musk to his official biographer, Walter Isaacson, where he claimed he would “hunt every single one of” Twitter’s executives and directors “till the day they die.” The executives argue that these statements demonstrate Musk’s intention to cheat them out of their severance benefits.
Interestingly, the executives had “good reason” clauses in their contracts that entitled them to a full payout if Twitter ceased to be a publicly traded entity. This clause was triggered when Twitter went private in October 2022. However, Musk and his team seemingly overlooked this provision when they terminated the executives.
Despite the gravity of the lawsuit, Musk has remained silent on the matter. Representatives for X Corp have also declined to comment on the legal action. It remains to be seen how Musk and X Corp will respond to the complaint.
This lawsuit highlights the ongoing legal battles surrounding Musk and his business ventures. With a mounting number of lawsuits from vendors, service providers, and former employees, it seems that Musk’s reputation as a litigious figure is well-deserved. As the former Twitter executives seek justice and their rightful severance benefits, the outcome of this case could have significant implications for Musk and his handling of employee compensation.
As this story continues to unfold, we will update this article with any statements or developments from Musk or X Corp. Stay tuned for more updates on this high-stakes legal battle.