A group of four former Twitter executives is taking legal action against Elon Musk, alleging that he owes them over $128 million in severance payments following their departure from the company during his takeover in late 2022.
The lawsuit, filed in California’s Northern District on Monday and initially reported by The Wall Street Journal, involves Parag Agrawal, Twitter’s former chief executive; Ned Segal, its ex-chief financial officer; Vijaya Gadde, former head of legal and policy; and Sean Edgett, former general counsel.
According to the lawsuit, Twitter, under Musk’s control, has been neglecting payments to employees, landlords, vendors, and others. The lawsuit accuses Musk of disregarding financial obligations and operating with a sense of entitlement, using his wealth and influence to disregard anyone who opposes him.
The four executives were promised substantial severance packages after Musk took Twitter private, but they claim that Musk, feeling pressured into acquiring the company for $44 billion, withheld their benefits. Allegedly, they were terminated without proper explanation and were accused of “gross negligence and willful misconduct” as a tactic to deny them their entitlements.
The lawsuit contends that Musk fired them without cause and concocted false reasons to justify his decision, appointing employees from his various companies to support him. Musk reportedly harbored resentment toward the executives, expressing a desire for revenge. According to the lawsuit, he vowed to undermine their severance benefits to save $200 million.
The group accuses Musk of employing delay tactics and legal maneuvers to avoid paying what he owes, following what they describe as the “Musk playbook” of keeping money owed to others. They assert that their severance packages, comprising one year’s salary, stock awards, and health insurance premiums, amount to $57 million for Agrawal, $44 million for Segal, $20 million for Gadde, and $6 million for Edgett.
Musk has not responded to Monday’s filing. This legal action follows news of his displacement by Jeff Bezos as the world’s wealthiest person. As of now, Musk’s lawyer has not provided a comment on the matter.
Since Musk assumed control of Twitter, over two dozen lawsuits, including some from former employees, have been filed against the company for non-payment, as documented by a website tracking legal actions against Twitter.
