New Delhi: Nearly three years after the dramatic takeover of Twitter, Elon Musk has agreed to end one of his longest legal fights. The billionaire and his company X Corp have reached a settlement with four former Twitter executives who were fired in 2022.
According to court filings in San Francisco, Musk has settled with ex-CEO Parag Agrawal, former CFO Ned Segal, legal head Vijaya Gadde, and general counsel Sean Edgett. The group had claimed they were owed $128 million in severance, which they never received after Musk’s entry at Twitter. The exact terms of the deal are still under wraps, but a federal judge recently paused case deadlines to let both sides finalize the agreement.
Musk and the lawsuit from top executives
The dispute dates back to October 2022 when Musk closed the $44 billion Twitter acquisition and fired several top executives overnight. According to the lawsuit, the executives were each entitled to one year’s salary and stock benefits. They accused Musk of falsely alleging misconduct to avoid paying the agreed severance.
Musk and his team denied those claims. They argued the executives were dismissed for performance reasons, not to escape payouts. This standoff led to a drawn-out legal battle in federal court that has finally ended in settlement.
Another chapter in Musk’s cost-cutting spree
This settlement follows a similar move in August, when Musk’s company agreed to settle a lawsuit over $500 million in unpaid severance to thousands of former employees laid off during massive downsizing. His takeover of Twitter was marked by sudden and deep cost-cutting measures. More than half of the company’s staff were let go, triggering a series of lawsuits from both executives and rank-and-file workers.
For Musk, this agreement brings some closure to a long list of disputes that followed the rebranding of Twitter into X. While other controversies remain, this is one of the rare cases where both sides have agreed to end the fight without trial.
What it means for Parag Agrawal and his team
For Agrawal, Segal, Gadde and Edgett, the settlement ends years of uncertainty. While the amount they will receive has not been disclosed, their claims of $128 million in severance underline how high the stakes were. The case also drew attention because it showed the scale of executive contracts at major tech firms, especially during acquisitions.
Neither Musk nor the lawyers representing the executives have commented on the settlement. But the pause in deadlines and court filings indicates the matter is moving toward resolution.
A rare resolution in Musk’s Twitter saga
Since taking control, Musk has faced everything from employee protests to contractor disputes over unpaid benefits. Many cases are still pending. But this one, involving Twitter’s top brass, stood out for the sheer size of the money involved and the public drama that surrounded Musk’s takeover.