Elon Musk and Ex-Twitter CEO Parag Agrawal Settle $128 Million Severance Dispute

A $128 million lawsuit brought by former CEO Parag Agrawal and three other senior managers who claimed they were not given severance pay has been settled between Elon Musk and the business that was formerly known as Twitter.

A September 30 federal court filing that postponed litigation deadlines and the date of a scheduled hearing in San Francisco did not reveal the terms of the settlement. The executives' attorney stated in the petition that the parties had negotiated a settlement and that it has specific requirements that must be fulfilled soon.

Musk and X Officials Agrees to Settle $500 Million Suit

The agreement comes as Musk and representatives of X Corp., the new name for Twitter, reached a settlement in August to pay $500 million to roughly 6,000 rank-and-file workers who were laid off and claimed the billionaire had cheated them on severances after taking over the social media company. An email requesting comment on the settlement was not immediately answered by X and Musk representatives on Tuesday. Additionally, a lawyer for the former executives did not immediately respond to a request for comment via email.

Musk did Entire Reshuffling of X After Taking Over

Musk acquired Twitter in 2022 after abandoning an attempt to renege on his $44 billion acquisition offer. This decision was made after a judge in Delaware, where Twitter was incorporated at the time, ruled against him in several pre-trial decisions. Musk sacked a few high-ranking Twitter executives as soon as he took over.

The individuals who filed the lawsuit in addition to Agrawal were Vijaya Gadde, the company's chief legal and policy officer; Ned Segal, the company's chief financial officer; and Sean Edgett, the former general counsel of Twitter who currently serves in the same capacity for Match Group. In numerous lawsuits, Twitter—which the billionaire rebranded as X—was charged with labour and workplace infractions, including not providing severance compensation to thousands of laid-off employees.

Former Twitter employees accused Musk of stealing their wages in a severance class-action lawsuit, but a federal court in Delaware dismissed part of the case last month, ruling that the billionaire could not be held accountable as an "alter ego" of the corporation.