Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Former Twitter execs sue Elon Musk for over $128 million in severance

Published 03/04/2024, 02:57 PM
Updated 03/04/2024, 04:40 PM
© Reuters. FILE PHOTO: Elon Musk, CEO of SpaceX and Tesla and owner of X, formerly known as Twitter, attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gon

(Reuters) -Four former top Twitter executives, including former CEO Parag Agrawal, have sued Elon Musk for over $128 million in combined unpaid severance, according to a lawsuit filed on Monday.

The lawsuit, filed in federal court in San Francisco, is the latest in a series of legal challenges the billionaire faces after he acquired the social media company for $44 billion in October 2022 and later renamed it X.

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

Mere minutes after Musk took control of Twitter, the former executives say they were fired and that Musk falsely accused them of misconduct and forced them out of Twitter after they sued the billionaire for attempting to renege on his offer to purchase the company.

Musk then denied the executives severance pay they had been promised for years before he acquired Twitter, according to the lawsuit. The plaintiffs say they each are owed one year's salary and hundreds of thousands of stock options.

"This is the Musk playbook: to keep the money he owes other people, and force them to sue him," the former executives said in the 39-page lawsuit.

X is already facing a pair of proposed class actions claiming it owes rank-and-file workers who were laid off after Musk's acquisition at least $500 million in severance, and a third lawsuit by six former senior managers making similar claims. X has denied wrongdoing.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The company has also been sued previously for failing to pay its former public relations firm, landlords, vendors and consultants.

X did not respond to a Reuters request for comment.

Latest comments

Musk, like Trump, is a deadbeating scofflaw.
musk learned from trump - don't pay anyone till they sue and win in court and then don't pay until forced - all that interest sits in your acct not there's
Go cry 🤡
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.