Four former Twitter executives, including ex-CEO Parag Agrawal, are taking legal action against Elon Musk for not fulfilling their severance agreements. The executives collectively seek $128 million in compensation, as stated in the lawsuit.
Legal Battle Over Unpaid Severance
Following Elon Musk's acquisition of Twitter in 2022, four high-ranking executives were terminated without receiving their entitled severance pay. The lawsuit, filed in California and obtained by Business Insider, highlights the dispute between Musk and the former executives.
Plaintiffs and Allegations
The lawsuit involves former CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett. These executives claim that Musk unjustly fired them and is withholding their severance pay, totaling $128 million.
Legal Actions and Musk's Response
According to The Wall Street Journal, the conflict has been ongoing for over a year, with Musk asserting that he terminated the executives for cause and is not obligated to provide severance. The lawsuit accuses Musk of deliberately delaying payments owed to the executives and subjecting them to unnecessary legal proceedings.
Despite the legal action, Elon Musk's attorney has not yet responded to Business Insider's request for comments. The plaintiffs' spokesperson refrained from providing additional statements beyond those outlined in the complaint.
Previous Lawsuits and Ongoing Disputes
Elon Musk and his companies have been embroiled in multiple legal battles over unpaid severance. Settlement discussions for a $500 million class-action lawsuit failed recently, while six former senior managers are also pursuing legal action for severance pay.
In a separate case, Agrawal, Segal, and Gadde sued Twitter for over $1 million in August, citing unpaid legal fees related to their separations from the company.
Insights from the Lawsuit
The $128 million lawsuit sheds light on a narrative from Musk's biography, where he hastened the acquisition process to dismiss Agrawal and other executives before their stock options vested. Agrawal's disputes with Musk over operational issues and Segal's challenges navigating Musk's decisions are highlighted in the legal proceedings.
As the legal battle unfolds, it underscores the complexities of severance agreements and the challenges faced by former executives seeking compensation from high-profile individuals like Elon Musk.
—————————————————————————————————————————————
By: insider@insider.com (Geoff Weiss)
Title: Former Twitter Executives Sue Elon Musk for $128 Million in Unpaid Severance
Sourced From: www.businessinsider.com/twitter-execs-say-elon-musk-owes-them-128-million-severance-2024-3
Published Date: Mon, 04 Mar 2024 21:48:13 +0000
Related posts:
Twitter has reportedly stopped making payments on rent to its offices, and it is also considering not paying severance pay to employees who have been laid off.
Twitter is being sued in a lawsuit by a consultant firm. They claim it owes $2 million for the work it performed to get Elon Musk’s acquisition.
Twitter had the need to tell its employees that the email they received about their severance agreements ‘isn’t a phishing effort’ after many people went straight for spam.
Elon Musk is being accused by a lawyer representing many laid-off Twitter staff members of trying ‘fleece” workers over severance compensation.
Leave a Reply