Former Twitter executives sue Elon Musk over alleged unpaid severance

Elon Musk is being sued by Twitter's ex-top brass, who say he owes them over $128m (£100m) in outstanding severance.
Elon Musk is being sued by Twitter's ex-top brass, who say he owes them over $128m (£100m) in outstanding severance.

Elon Musk is being sued by Twitter’s ex-top brass, who say he owes them over $128m (£100m) in outstanding severance.

Dismissal and Allegations

Four former Twitter executives, including ex-chief Parag Agrawal, have filed a lawsuit against Elon Musk, claiming they were unjustly fired by him as he assumed control of Twitter, now known as X. 

They allege that Musk terminated them “without reason” and fabricated causes to avoid fulfilling their severance agreements.

Pattern of Non-Payment

The executives argue that their dismissals are part of a broader trend of Musk refusing to compensate former employees as required. They contend that Musk has a history of denying former staff their rightful dues.

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Legal Action

Parag Agrawal, along with former CFO Ned Segal, former CLO Vijaya Gadde, and former GC Sean Edgett, filed the lawsuit seeking one year’s salary and stock awards under a severance plan, totaling millions of dollars for each executive.

Twitter Acquisition and Firings

Musk acquired Twitter for $44 billion in 2022 after initially attempting to back out of the deal. 

Following the acquisition, Musk swiftly ousted key leaders, including the four executives named in the lawsuit, purportedly due to “gross negligence and willful misconduct.”

Disputed Reasons for Termination

The lawsuit challenges the reasons provided for their terminations, alleging that Musk was actually displeased about being compelled to proceed with the Twitter acquisition. 

The executives claim Musk has been evading payment by disregarding the severance plans that outline compensation in case of unjust dismissals.

Legal Battle

The dispute over the owed severance has persisted since the executives’ terminations, with both sides engaging in legal wrangling. 

The lawsuit indicates that all administrative avenues for resolution have been exhausted.

Response from Musk

Elon Musk has not publicly commented on the lawsuit. His attorney, Alex Spiro, has not responded to requests for comment from media outlets, including the BBC.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

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