Four Former Twitter Executives Sue Elon Musk for $128 Million Over Non-Payment of Severance

• CEO Parag Agrawal, former CFO Ned Segal, former Chief Legal Officer Vijaya Gadde, and former General Counsel Sean Edgett have sued Musk for not paying their severance after they were fired without sufficient cause.
• Twitter has 25+ pending cases over nonpayment of bills from vendors and a landlord.
• The company has also been sued for $500 million by another Twitter former employee.

Elon Musk has been sued by 4 former Twitter (now called X) executives- including CEO Parag Agrawal, former CFO Ned Segal, former Chief Legal Officer Vijaya Gadde, and former General Counsel Sean Edgett-over nonpayment of their severance packages. The complaint was filed on Monday in the US District Court for the Northern District of California.

If this lawsuit goes in their favor, they'll receive a total sum of $128 million.

After Musk took control of the company in 2022, he almost immediately fired these 4 people. However, it's been more than a year since then and they claim that Musk hasn't paid their severance yet.

According to them, Musk has outright denied them severance which he's legally bound to pay. Allegedly, he's trying to get back at them for forcing him into buying Twitter for $44 billion - a deal that he apparently tried to get out of for months. So by refusing their severance, he's not only taking revenge but also trying to make up for his loss.

The only reason why Musk got out of paying them for so long is because he put the blame on the employees. He accused them of gross negligence and willful misconduct' but was unable to provide any evidence to support his claims.

Because Musk decided he didn't want to pay plaintiffs' severance benefits, he simply fired them without reason, then made up a fake cause and appointed employees of his various companies to uphold his decision.Complaint

Neither Musk nor X has made any official statement about this lawsuit yet.

Read More: Federal Judge orders Elon Musk to testify again in SEC probe on his Twitter takeover

A Breakdown Of All The Accusations in The Complaint

The executives aren't just complaining about their own problems. Along with their lawyers, they are also shedding light on everything people associated with Twitter have had to endure ever since Musk took over.

For example, they stated that Musk doesn't pay any of his bills because he feels the rules don't apply to him.

More than 25 lawsuits have already been filed against the company by vendors and a landlord over non-payment.

Whether he's doing it purely out of revenge or not is still unclear. But one controversial statement that he made to his biographer Walter Isaacson was mentioned in the complaint and it doesn't help his case.

The statement says that he would hunt every single one of' Twitter's executives and directors till the day they die.'

The lawyers also pointed out that these aren't just ramblings in the heat of the moment. According to them, Musk has a clearly-crafted plan that he shared with Isaacson about how he plans to deprive executives of their well-deserved severance package.

This particular entry was made on 27th October, which is the day before the deal was officially closed. According to this entry, he planned to fire them before the executives had a chance to resign and that's exactly what happened.

Since it all happened so fast, none of them had the time to even type out their resignation and before they knew it, their access to their emails was revoked. By doing so, Musk saved the company $200 million.

This isn't the only time Musk has been sued for a massive sum from his employees. Another former Twitter employee brought a class action lawsuit against him in July that requires him to pay additional severance and benefits to employees who were laid off during the takeover. The total compensation would cost him $500 million.

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