Musk’s X Corp Settles $128M Lawsuit With Former Twitter Execs

A settlement has been reached between X Corp. and several former top executives of Twitter regarding a lawsuit over unpaid severance. The agreement was disclosed in a recent filing at a San Francisco federal court. The plaintiffs are former Twitter CEO Parag Agrawal, ex-CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett.

The four former executives claimed they were owed about $128 million after the company was acquired by Elon Musk. According to a Reuters report, the exact terms of the agreement remain confidential.

The lawsuit stated that the executives did not receive their contractually agreed severance following Musk’s $44 billion takeover of Twitter in 2022. The company, rebranded as X, faced additional claims, including a separate $500 million settlement reached in August concerning severance for other former employees. Reports indicated that some workers were promised at least two months’ salary and additional pay based on years of service, but received less than the agreed amounts.

Following the takeover, Musk implemented workforce reductions, laying off more than half of Twitter’s employees as part of cost-saving measures. Last week, a federal judge denied Musk’s request to relocate an unrelated lawsuit by the U.S. Securities and Exchange Commission to Texas. The SEC suit involves alleged late disclosure of Musk’s stake in the company.

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