Former Twitter executives sue Elon Musk for $128 million| Trending Viral hub

Four former Twitter executives sued Elon Musk on Monday, accusing the billionaire of withholding severance payments worth $128 million after he fired them from the company. during his inauguration in 2022.

When Musk bought Twitter for $44 billion, he fired Parag Agrawal, its CEO; Ned Segal, his chief financial officer; Vijaya Gadde, its head of legal and political affairs; and Sean Edgett, his general counsel. Musk later changed the company’s name to X.

The executives had clauses in their contracts that stipulated that they could receive severance if Twitter was no longer a public company, so when Musk took the company private in October 2022, they were entitled to the payments, the lawsuit, states filed in the U.S. District Court for the Northern District of California. The severance package included one year’s salary plus unvested stock awards.

At the time of the acquisition, Musk said he could fire executives “for cause” to avoid paying them severance. Mr. Musk he told his biographer, Walter Isaacson, that would deny severance pay for executives, saving about $200 million. He told Isaacson that he would “hunt” the executives “until the day he dies.”

Lawyers for the executives wrote in court papers: “This is Musk’s strategy: keep money he owes other people and force them to sue him. Even in the event of defeat, Musk can impose delays, inconvenience and expense on others less able to afford it.”

The executives previously sued Musk for legal fees they incurred while responding to investigations into the company. In October, a Delaware judge ordered Mr. Musk pay them $1.1 million to cover those expenses.

A representative for X and a lawyer for Musk did not immediately respond to requests for comment.

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