Elon Musk has reached a settlement agreement with four former top Twitter executives he dismissed following his acquisition of the company in 2022. The executives, who include former CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett, had filed a lawsuit against Musk for over $128 million in unpaid severance.
An update to the case in the US Northern District Court of California indicates that the parties have agreed to an undisclosed settlement. This agreement is contingent on certain unspecified conditions being met imminently. As a result, existing deadlines related to the lawsuit have been extended to allow Musk time to satisfy these obligations.
The lawsuit had been initiated in March 2024 after the executives alleged that Musk completed the $44 billion acquisition of Twitter early to deprive them of approximately $200 million in stock options that would have vested the following day. The complaint referenced a statement made by Musk in Walter Isaacson’s biography, where he mentioned that closing the deal a day early would create a significant financial difference for the executives. Additionally, it claimed that Musk expressed intentions to pursue Twitter’s executives and directors aggressively.
If the terms of the settlement are not fulfilled, the lawsuit against Musk and his rebranded company, X, is scheduled to resume on October 31st. In a related context, X previously settled numerous cases in August involving former employees who were laid off following mass firings, which included allegations of inadequate notice prior to termination in violation of federal regulations.
Source: https://www.theverge.com/news/796239/elon-musk-x-128-million-twitter-exec-lawsuit-settlement