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  • Writer's pictureBy The Financial District

Former Twitter Execs Sue Elon Musk For $128 Million In Unpaid Severance

Elon Musk is facing a $128-million lawsuit from four former Twitter executives who allege the billionaire tech mogul failed to pay them severance after acquiring the social network.


The lawsuit refers to Musk's alleged rush to finalize the Twitter deal ahead of schedule to terminate the executives "for cause" just before their final stock options vested. I Photo: Anthony Quintano Flickr



The lawsuit, filed on Monday in California, adds to the legal challenges Musk is currently navigating, including a separate complaint last year by rank-and-file employees seeking $500 million in unpaid severance, as reported by Nick Robins-Early for The Guardian.


The lawsuit accuses Musk of firing the executives without valid reason and withholding their severance benefits.


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Upon acquiring Twitter, Musk terminated CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett.


The suit claims that Musk harbored animosity toward the executives due to their involvement in a previous legal battle that compelled Musk to proceed with the acquisition against his wishes.


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According to the lawsuit, Agrawal is owed $57.4 million, Segal $44.5 million, Gadde $20 million, and Edgett $6.8 million, totaling approximately $128 million, as outlined by Karissa Bell for Engadget on March 5.


The lawsuit refers to Musk's alleged rush to finalize the Twitter deal ahead of schedule to terminate the executives "for cause" just before their final stock options vested, as detailed in Musk biographer Walter Isaacson's account.


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Isaacson noted that Musk boasted about saving approximately $200 million through this legal maneuver.


Lawyers representing the executives stated, "This is the Mr. Musk playbook: to keep the money he owes other people and force them to sue him," emphasizing Musk's purported disregard for rules and his utilization of wealth and influence to circumvent accountability, as highlighted by Alex Singleton in The Telegraph.Words




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