Former Twitter CEO Parag Agrawal and Executives Sue Elon Musk for $128 Million : Here’s Why

Four former Twitter executives, including ex-CEO Parag Agrawal, have filed a lawsuit against Elon Musk, the current CEO of Twitter, seeking $128 million in unpaid severance payments. The lawsuit alleges that Musk, who acquired Twitter in a $44 billion deal in 2022, publicly declared his intention to withhold their severance payments, totaling around $200 million, showing “special ire” towards them.

The other executives involved in the lawsuit are former Twitter CFO Ned Segal, former Head of Legal and Policy Vijaya Gadde, and former General Counsel Sean Edgett. In the complaint filed in the US District Court for the Northern District of California, Agrawal’s lawyers accused Musk of turning Twitter into a company that refuses to meet its financial obligations, asserting that Musk doesn’t abide by rules, avoids payments, and uses his wealth and power to dominate dissenting voices.

The lawsuit mentions termination letters sent by Musk to the executives, accusing them of “gross negligence” and “willful misconduct” without providing any supporting facts. The legal action follows Musk’s takeover of Twitter, where he assumed control in 2022. The severance payments, part of the $44 billion deal, have become a point of contention, leading to the executives seeking legal recourse.

As per the executives’ employment agreements, Agrawal was entitled to an annual salary of $1 million, along with $12.5 million in company stock and a $60 million “golden parachute” payment in case of involuntary termination. Segal and Gadde were entitled to $46 million and $21 million, respectively, under similar circumstances.

This lawsuit adds to the legal battles between Musk and former Twitter executives. Previously, Agrawal, Gadde, and others had successfully sued Twitter (now X) for $1.1 million in legal fees incurred during their tenure with the social media company. The ongoing legal saga underscores the complexity and disputes arising from corporate takeovers and leadership changes.