In a dramatic legal showdown, a group of former Twitter executives, led by ex-CEO Parag Agrawal, has initiated legal proceedings against Elon Musk and X, alleging unpaid severance to the tune of a staggering $128 million. The contentious claims trace back to the tumultuous events surrounding Musk’s acquisition of Twitter in October 2022, which set off a chain of controversial actions.
Upon seizing control of the social media giant, Musk promptly axed Agrawal along with CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett. The lawsuit contends that Musk harbored deep animosity toward this cadre of executives due to their pivotal roles in a protracted legal battle that compelled Musk to honor the acquisition deal after initially attempting to retreat. According to the lawsuit, Agrawal is purportedly owed $57.4 million in severance, Segal $44.5 million, Gadde $20 million, and Edgett $6.8 million, culminating in a staggering total of approximately $128 million.
The legal saga delves further into the intricacies of Musk’s maneuvering, citing accounts from renowned biographer Walter Isaacson, who detailed how Musk hastened the Twitter deal’s closure by a day to orchestrate the executives’ dismissals “for cause” just before their stock options vested. Isaacson’s narrative suggests that Musk gloated about his shrewd tactics, boasting of saving around $200 million in the process.
The lawsuit doesn’t mince words in its condemnation of Musk’s actions, portraying him as a brazen defier of norms who wields his wealth and influence to steamroll dissent. It alleges that Musk callously disregarded the executives’ severance entitlements, opting to terminate them arbitrarily and then concocting spurious justifications to legitimize his decisions.
Notably, X has yet to issue an official response to the lawsuit, leaving the legal battle poised for further escalation. This latest legal volley adds another layer of complexity to an already contentious chapter in Twitter’s history, wherein former employees have mounted previous legal challenges against the company for failing to honor severance obligations. For Agrawal, Segal, Gadde, and Edgett, this legal battle represents a quest for justice amid the fallout from Musk’s controversial acquisition of Twitter.
