Elon Musk Sued Over $128m Unpaid Severance

Elon Musk is facing a lawsuit from Twitter’s former top brass, who say he owes them more than $128m (£100m) in unpaid severance.

The four executives, including former chief Parag Agrawal, said Mr Musk fired them as he took over Twitter, now X, “without reason, then made up fake cause” to avoid handing over the money.

They said the move was part of a “larger pattern” of refusing to pay former staff what they were due.

Mr Musk did not immediately comment.

Mr Agrawal filed the lawsuit with former chief financial officer Ned Segal, former chief legal officer Vijaya Gadde and former general counsel Sean Edgett.

In the lawsuit, they contend that under a years-old severance plan they are owed one year’s salary and stock awards. That would total more than $57m for Mr Agrawal; more than $44m for Mr Segal; more than $20m for Ms Gadde; and more than $6m for Mr Edgett.

Mr Musk purchased Twitter in 2022 for $44bn. The billionaire attempted to get out of the acquisition, but he eventually went ahead with the contentious agreement under threat of a lawsuit.

He then moved within minutes of the deal closing to fire key leaders, which included the four executives.

According to the lawsuit, the four men were told they had been sacked for “gross negligence and willful misconduct”. Examples that were given included signing off on retention bonuses for Twitter employees, thousands of whom were also fired in the wake of the takeover.

But the lawsuit alleges Mr Musk was angry about being forced to complete the purchase. It further claims he has attempted to avoid paying the millions he owed the leaders, dismissing the severance plans that laid out compensation if the executives lost their jobs without cause.

The two sides have been fighting over the money ever since and have now exhausted the administrative process, the lawsuit said.

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