Elon Musk and former Twitter execs agree to settle $128 million lawsuit
Over a year after former Twitter executives sued Elon Musk for around $128 million in unpaid severance benefits, both parties have agreed to settle for an undisclosed amount. The settlement is dependent on "certain conditions" being met in the near term, according to a new filing in the Northern District Court of California, but will postpone existing deadlines in the case so Musk can fulfill his obligations.
Former Twitter CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde and general counsel Sean Edgett originally sued Musk for millions of dollars of unpaid severance benefits in 2024. The justification for their lawsuit was made clear in Walter Isaacson's account of the Twitter acquisition: Musk closed the $44 billion deal early and fired the executives in an attempt to avoid paying out their severance and vested stock options. The executives naturally sued, and now appear to be receiving some amount of what they're owed.
The whole lawsuit likely wouldn't have happened if Musk hadn't originally tried to back out of his acquisition of Twitter, which the company later forced to happen through an extended legal battle. The early days of Musk's ownership of the social network were characterized by drastic cost saving measures as a result, including mass layoffs and the decision to just not pay rent for some of the company's offices.
Finally settling this lawsuit closes the book on that original Twitter saga, with a dismissal of the lawsuit the only real missing milestone. If for whatever reason Musk and X are not able to meet the terms of the settlement, the case will continue on October 31.This article originally appeared on Engadget at https://www.engadget.com/social-media/elon-musk-and-former-twitter-execs-agree-to-settle-128-million-lawsuit-181915972.html?src=rss