SAN FRANCISCO, United States — Elon Musk has agreed to settle a $128 million lawsuit filed by four top former Twitter executives whom he dismissed shortly after acquiring the social media company in 2022.
The agreement provides a conditional resolution to one of the most high-profile legal battles stemming from Musk’s tumultuous takeover of Twitter, which was subsequently rebranded as X.
The plaintiffs in the case include former CEO Parag Agrawal, former Chief Financial Officer Ned Segal, former Chief Legal Officer Vijaya Gadde, and former General Counsel Sean Edgett. They had jointly sued the tech billionaire, claiming they were owed a combined $128 million in severance and benefits that were contractually obligated upon their abrupt termination.
According to recently filed court documents, the settlement remains conditional and is contingent upon unspecified terms being met. If these conditions are not fulfilled, the lawsuit is scheduled to resume on October 31.
The executives alleged in their complaint that they were fired within minutes of Musk completing the $44 billion acquisition in late 2022.
The filing claimed Musk acted in bad faith and established a pattern of withholding contracted compensation until compelled to settle through legal action.
Broader legal scrutiny
The settlement adds to a lengthy list of legal challenges Musk and X face related to the transition and subsequent restructuring of the social media platform.
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In addition to this executive suit, X is currently battling multiple lawsuits from other laid-off employees and former managers who similarly accuse the company of denying contractually obligated severance payments.
While neither Musk nor X has issued a public comment regarding the settlement, legal analysts suggest the move may represent an attempt to bypass prolonged litigation and mitigate further reputational damage associated with the leadership transition.
The case highlights the intense scrutiny surrounding Musk’s management style and his approach to fulfilling contractual obligations since assuming ownership of the platform.
