Musk's X Settles Ex-Twitter Execs’ $128-M Severance Pay Lawsuit

Elon Musk and X Corp. have reached a settlement in a lawsuit filed by four former top Twitter executives — including former CEO Parag Agrawal — who claimed they were denied $128 million in promised severance pay after Musk acquired the social media company and fired them, Daniel Wiessner reported for Reuters.

In August, X also agreed to settle a separate lawsuit by rank-and-file Twitter employees who were laid off en masse and alleged they were owed $500 million in unpaid severance. (Photo: Twitter)

The terms of the settlement, which were first disclosed in a filing in San Francisco federal court last week, were not made public.

A federal judge on Oct. 1 postponed filing deadlines and a hearing in the case to allow time for the settlement to be finalized.

In August, X also agreed to settle a separate lawsuit by rank-and-file Twitter employees who were laid off en masse and alleged they were owed $500 million in unpaid severance.

The cases are among a series of legal challenges Musk, the world’s richest person, has faced since acquiring Twitter for $44 billion in 2022, cutting more than half of its workforce, and rebranding it as X.

The company and lawyers for the former executives did not immediately respond to requests for comment.

The plaintiffs are Agrawal; Ned Segal, Twitter’s former chief financial officer; Vijaya Gadde, its former chief legal officer; and Sean Edgett, its former general counsel.