Musk and Former Twitter Executives Reach Settlement in $128M Severance Lawsuit

Elon Musk and X Corp. have agreed to a settlement with former Twitter executives Parag Agrawal, Ned Segal, Vijaya Gadde and Sean Edgett over roughly $128 million in unpaid severance and stock option payouts. The settlement amount has not been publicly disclosed and is contingent on “certain conditions” being met in the near term, according to a filing in the U.S. District Court for the Northern District of California.

Key points

• Parties: Parag Agrawal (former CEO), Ned Segal (former CFO), Vijaya Gadde (former CLO), Sean Edgett (former general counsel) vs. Elon Musk/X Corp.
• Allegations: Executives sued over unpaid severance and vested stock options after Musk closed the $44B acquisition early and terminated them.
• Settlement: Agreed to an undisclosed amount; settlement is conditional and will extend current case deadlines to allow Musk/X to fulfill obligations.
• Deadline: If conditions are not met, the case will continue on October 31.

Background

The dispute traces back to Musk’s 2022 acquisition of Twitter and his early-term cost-cutting moves, including mass layoffs and other operational changes. The executives claimed Musk’s early termination of their employment was intended to avoid severance and option payouts — a claim detailed in Walter Isaacson’s account of the acquisition and later litigation.

What’s next

The court filing indicates the settlement will move forward only if the specified conditions are satisfied. If not, the lawsuit will proceed with the October 31 date set for further action.

Sources

• TechCrunch — Elon Musk will settle $128M lawsuit with former Twitter execs
• StockTwits News — Settlement in $128M severance lawsuit

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