Former Twitter Executives Sue Elon Musk for $128 Million

 Former Twitter Executives Sue Elon Musk for $128 Million


4 former Twitter executives sued Elon Musk on Monday, accusing the billionaire of withholding severance funds value $128 million after he fired them from the corporate throughout his 2022 takeover.

When Mr. Musk purchased Twitter for $44 billion, he fired Parag Agrawal, its chief government; Ned Segal, its chief monetary officer; Vijaya Gadde, its head of authorized and coverage; and Sean Edgett, its normal counsel. Mr. Musk later renamed the corporate X.

The executives had clauses of their contracts stipulating that they might obtain severance if Twitter was now not a public firm — so when Mr. Musk took the corporate non-public in October 2022, they had been entitled to the funds, the lawsuit, filed in U.S. District Courtroom for the Northern District of California, claims. The severance included one yr’s wage plus unvested inventory awards.

On the time of the takeover, Mr. Musk stated that he might hearth the executives “for trigger” to keep away from paying them severance. Mr. Musk advised his biographer, Walter Isaacson, that he would deny the executives’ severance funds, saving himself about $200 million. He advised Mr. Isaacson he would “hunt” the executives “until the day they die.”

Attorneys for the executives wrote in courtroom paperwork: “That is the Musk playbook: to maintain the cash he owes different folks, and power them to sue him. Even in defeat, Musk can impose delay, trouble and expense on others much less in a position to afford it.”

The executives beforehand sued Mr. Musk for authorized charges they incurred whereas responding to investigations into the corporate. In October, a Delaware decide ordered Mr. Musk to pay them $1.1 million to cowl these bills.

A consultant for X and a lawyer for Mr. Musk didn’t instantly reply to requests for remark.



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