Four former Twitter executives sued Elon Musk on Monday, claiming the billionaire owes them more than $128 million in unpaid severance after he fired them over email shortly after he took over the social media giant.
The suit was filed by former Twitter chief executive Parag Agrawal, former chief financial officer Ned Segal, former head of legal and policy Vijaya Gadde and former general counsel Sean Edgett. The executives, fired after Musk’s 2022 takeover, say they were entitled to severance due to clauses in their contracts. (Twitter was later renamed X.)
The amounts include a year’s salary and stock options, but the group claims Musk “fired them without reason, then made up fake cause and appointed employees of his various companies to uphold his decision.”
According to Agrawal’s offer letter, obtained by The New York Times, he was entitled to a severance payment of more than $57 million. Segal was entitled to more than $44 million in benefits and Gadde more than $20 million. Edgett was also entitled to nearly $7 million, according to the suit.
Kirsty Wigglesworth/Pool/Associated Press
“Musk’s refusal to pay Plaintiffs their benefits is part of a larger pattern of refusing to pay Twitter’s former employees the benefits and other compensation they are due,” the complaint says. “He claimed in his termination letters that each Plaintiff committed ‘gross negligence’ and ‘willful misconduct’ without citing a single fact in support of this claim.”
The group’s lawyers argued the tactic fit with Musk’s public pledges to deny severance to employees he fired after taking over Twitter. The suit added Musk had vowed a “lifetime of revenge” on the former executives after the group blocked his attempt to walk out on the $44 billion takeover deal.
“This is the Musk playbook: to keep the money he owes other people, and force them to sue him,” the filing reads. “Even in defeat, Musk can impose delay, hassle, and expense on others less able to afford it.”
Agrawal, Segal and Gadde were reimbursed for legal expenses after suing X to pay for them.
Support HuffPost
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
At HuffPost, we believe that everyone needs high-quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact-checked news that is freely accessible to everyone.
Whether you come to HuffPost for updates on the 2024 presidential race, hard-hitting investigations into critical issues facing our country today, or trending stories that make you laugh, we appreciate you. The truth is, news costs money to produce, and we are proud that we have never put our stories behind an expensive paywall.
Would you join us to help keep our stories free for all? Your contribution of as little as $2 will go a long way.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That’s why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we’ll bring you hard-hitting investigations, well-researched analysis and timely takes you can’t find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you’ll consider contributing to HuffPost once more.
Already contributed? Log in to hide these messages.
