Former Twitter Leadership Takes Legal Action Against Elon Musk Over Unpaid Severance

Four former Twitter executives, including ex-CEO Parag Agrawal, have filed a lawsuit against Elon Musk, alleging they are owed more than $128 million in severance payments following their abrupt termination after Musk’s acquisition of the social media platform (now rebranded as X).

The Lawsuit: Key Allegations

  • Mass Termination Without Cause: Musk fired Agrawal, CFO Ned Segal, and top lawyers Sean Edgett and Vijaya Gadde immediately after finalizing his $44 billion Twitter purchase in October 2022.
  • Alleged Personal Vendetta: Court documents cite Walter Isaacson’s Musk biography, quoting Musk vowing to pursue Twitter’s executives indefinitely. The plaintiffs claim Musk developed “special ire” toward them after they enforced his original acquisition agreement when he attempted to back out of the deal.
  • Content Moderation Controversy: Gadde, Twitter’s former legal head, faced particular scrutiny from Musk over her role in high-profile content moderation decisions. Musk’s public criticism led to targeted online harassment against her.

Broader Pattern of Unpaid Obligations

This lawsuit joins multiple ongoing legal battles involving Musk’s Twitter acquisition:

  • Employee Severance Claims: Numerous ex-Twitter staff have filed similar lawsuits over unpaid severance.
  • Commercial Lease Disputes: X Corp has faced evictions and lawsuits for unpaid office rents in several locations.

Legal Arguments and Musk’s Defense

The terminated executives argue Musk falsely accused them of “gross negligence” and “willful misconduct” without evidence to avoid severance payments. Their filing states:

“This is the Musk playbook: to keep the money he owes other people, and force them to sue him. Even in defeat, Musk can impose delay, hassle, and expense on others less able to afford it.”

Context: Musk’s Legal Challenges

This lawsuit follows closely after Musk filed against OpenAI (March 2024), demonstrating his frequent involvement in high-stakes corporate litigation. Legal experts suggest these cases may test boundaries of executive compensation and acquisition-related obligations.

For ongoing coverage of tech industry legal developments, follow our analysis of major corporate lawsuits and their implications for executive accountability.

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