Former Twitter CEO and three other fired executives sue Elon Musk for $128 million in severance pay

In a dramatic turn of events, four high-profile former Twitter executives, including the ex-CEO Parag Agrawal, have initiated legal proceedings against Elon Musk, the renowned entrepreneur, and SpaceX and Tesla chief.

The lawsuit, filed on March 4, 2024, seeks a staggering $128 million in allegedly unpaid severance pay, asserting that Musk summarily dismissed them without valid grounds following the acquisition of Twitter in October 2022. The executives claim that Musk subsequently contrived reasons to sidestep the obligation of providing the promised severance packages.

According to the legal documents, the executives assert that their employment contracts guaranteed them severance packages, but Musk purportedly terminated their positions without any substantive rationale. The lawsuit contends that Musk then retroactively accused them of misconduct in a strategic move to avoid honoring the contractual agreements.

“Under Musk’s control, Twitter has become a scofflaw, stiffing employees, landlords, vendors, and others. Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him,” lawyers representing the four ex-executives said in the 38-page complaint.

This legal battle adds another layer to the ongoing legal saga surrounding Musk’s acquisition of Twitter, unveiling a pattern where Musk is accused of shirking financial responsibilities towards former Twitter employees. It underscores broader implications, suggesting a recurrent refusal by Musk to meet financial obligations owed to individuals who played pivotal roles in the acquired company.

It’s crucial to emphasize that these claims are presented within the context of the lawsuit, and neither Elon Musk nor X (formerly Twitter) has publicly responded to these allegations. As the legal proceedings unfold, it becomes imperative for stakeholders and the tech community to stay abreast of developments through reliable sources, awaiting the eventual resolution of this high-stakes dispute.