Elon Musk has reached an agreement to resolve a $128 million lawsuit brought by several former Twitter leaders, including ex-CEO Parag Agrawal, CFO Ned Segal, and chief legal officer Vijaya Gadde.
The legal action, initiated earlier this year, alleged that Musk unlawfully withheld severance payments that were contractually guaranteed to these executives following his acquisition of the platform-now renamed X-in 2022.
Shortly after acquiring Twitter, Musk dismissed CEO Parag Agrawal, CFO Ned Segal, and senior legal figures Sean Edgett and Vijaya Gadde as part of his initial restructuring moves.
The plaintiffs claim their severance was withheld because they challenged Musk’s commitment to his $44 billion acquisition deal when he sought to withdraw from the purchase.
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In Walter Isaacson’s biography of Musk, referenced in the lawsuit, Musk is quoted as vowing to “pursue every single one” of Twitter’s top executives “relentlessly.”
Initially, Musk’s legal team argued that the executives were terminated “for cause,” which would nullify their severance entitlements. However, experts reviewing internal emails and board documents found this claim unsubstantiated, leading Musk to opt for a settlement to avoid a protracted and expensive court battle.
The settlement, expected to be completed soon, concludes a protracted conflict emblematic of Musk’s chaotic early tenure at Twitter. It also highlights his broader initiative to resolve lingering legal issues as he advances X toward his vision of a “fully monetized all-in-one app.”
