Elon Musk and X have reached a settlement with a gaggle of executives over $128 million in severance that they allege Musk had not paid since he purchased what was then referred to as Twitter in 2022.
The executives, together with former Twitter CEO Parag Agrawal, former CFO Ned Segal, former Chief Legal Officer Vijaya Gadde and former General Counsel Sean Edgett, sued in 2024 alleging Musk withheld severance funds as a type of “revenge” after he was pressured to undergo with the $44 billion acquisition deal, which he had tried to get out of. All of the executives had been fired within hours after Musk took management of Twitter in October 2022, in the future earlier than the group would have seen $200 million in severance funds and vested inventory choices.
A courtroom order signed on October 1 within the US Northern District Court of California signifies that the 2 sides have reached a settlement, though it doesn’t element the phrases. The courtroom order delays depositions, together with of Musk, that had been set to happen by the top of October to enable “the Parties to meet conditions required under the settlement.”
The Verge first reported on the courtroom order and settlement info.
The lawsuit refers to parts of the approved Elon Musk biography by Walter Isaacson printed in 2023, through which Isaacson wrote Musk didn’t need the executives to accumulate their severance or vest the inventory choices “because of the price he was paying and his conviction that Twitter’s management had misled him.” Instead, the e-book says Musk pushed by way of a quicker shut of the Twitter sale in order that he might hearth the executives “for cause.” The lawsuit claims the trigger within the executives termination letters weren’t substantiated.
Representatives for the previous executives, Musk, and X didn’t instantly return requests for remark.
Musk and X reached a separate agreement in August to settle a lawsuit filed by a unique group of former Twitter workers who mentioned they had been owed lots of of hundreds of thousands of {dollars} in severance pay.