Twitter ex-CEO Parag Agrawal, 3 others sue Elon Musk for $128 million in severance payments.

In a legal showdown, Twitter ex-CEO Parag Agrawal and three former Twitter executives, have taken legal action against Elon Musk, accusing him of withholding over $128 million in severance payments. The lawsuit, filed in a northern California federal court, alleges Musk’s determination to recoup funds from the $44 billion Twitter deal led to the refusal of promised severance payments to the ousted executives.

Under Musk’s ownership, Twitter, now renamed X, faces mounting legal challenges, with accusations of labor violations, unpaid severance to laid-off workers, and financial obligations to vendors and landlords left unmet. The lawsuit paints a picture of a company under Musk’s control, accused of flouting rules, neglecting financial responsibilities, and leveraging Musk’s wealth and influence to assert dominance.

The lawsuit contends that Musk’s public commitment to withhold severance payments as part of the broader financial strategy has left former executives, including Agrawal, without the substantial payouts they were due. The legal action follows Musk’s firing of several high-ranking executives upon assuming control of Twitter, signaling a broader shake-up in the company’s leadership.

The dismissals, which included Vijaya Gadde, Ned Segal, and Sean Edgett, were not unexpected given their roles in Twitter’s legal battle against Musk’s initial attempts to back out of the purchase agreement. Each executive, including Agrawal, was in line for significant severance payouts, a key component of Musk’s acquisition deal.

While the legal battles continue, Agrawal and other former executives secured a Delaware judge’s ruling in October, compelling X to pay $1.1 million in legal expenses incurred during their tenure. However, court-ordered mediation in December failed to resolve claims from thousands of former Twitter employees who allege unfair denial of severance pay.

Additionally, a San Francisco judge rejected X’s attempt to dismiss a lawsuit by employees who asserted they were denied bonuses promised during the acquisition. The legal saga unfolds as the disgruntled former executives seek justice in the courtroom.

As the case of Agrawal v. Musk unfolds in the US District Court, Northern District of California, the outcome will undoubtedly shed light on the complexities of Musk’s takeover of Twitter and the legal ramifications for both former executives and the broader workforce.