Elon Musk and X have reached a settlement with four former executives from Twitter, including the ex-CEO, who claimed they were owed $128 million in severance pay after Musk’s acquisition of the social media platform in 2022. The former executives, Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett, alleged that Musk unjustly accused them of misconduct, leading to their termination following their legal action against him for attempting to withdraw his purchase offer. Musk and X have denied any wrongdoing, stating that the executives were dismissed due to performance issues.
The details of the settlement, which were disclosed in a San Francisco federal court filing last week, remain confidential. The former executives maintain they are owed a year’s salary along with substantial stock options promised to them prior to Musk’s purchase of the company.
In August, X also settled a separate lawsuit involving former Twitter employees who claimed they were entitled to $500 million in unpaid severance after being laid off during significant workforce reductions. These legal cases form part of a broader array of legal matters Musk has faced since acquiring Twitter for $44 billion and implementing drastic changes, including mass layoffs and a rebranding of the platform to X.
Source: https://www.theguardian.com/technology/2025/oct/08/elon-musk-x-lawsuit-twitter-executives-severance