Former X executives, including ex-CEO Parag Agrawal, sue Elon Musk for $128 Million: Report

Former Twitter (now X) executives, including ex-CEO Parag Agrawal, filed a $128 million lawsuit against current CEO Elon Musk, alleging unpaid severance, as reported by Bloomberg.

The executives including former Twitter chief financial officer Ned Segal, former Twitter head of legal and policy Vijaya Gadde, and former Twitter general counsel Sean Edgett claim that Musk, who took over Twitter in a $44 billion deal in 2022, publicly vowed to withhold their severance payments totaling around $200 million, displaying a 'special ire' towards them.

As mentioned in the report, Agrawal's legal representatives filed a 38-page complaint in the US District Court for the Northern District of California. It stated, "Under Musk’s control, Twitter has become a scofflaw, stiffing employees, landlords, vendors, and others. Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him."

According to a New York Times report citing Twitter's securities filing, Agrawal was slated to receive an annual salary of $1 million, along with $12.5 million in company stock as outlined in his offer letter. Additionally, the former Twitter CEO had a $60 million 'golden parachute' provision in case of involuntary termination. Similarly, Segal was entitled to $46 million, and Gadde to $21 million under similar circumstances.

Previously, Agrawal, Gadde, and other former employees had successfully sued, securing a Delaware court ruling that mandated Twitter (now X) to pay $1.1 million in legal fees incurred during their tenure with the social media company, as reported by Bloomberg.