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Elon Musk Twitter has reached a settlement with fired executives who sued the tech billionaire for more than $128 million in a dispute over their severance pay.
When? Musk to acquire Twitter in October 2022He led a massive purge of employees, including CEO Parag Agarwal, Chief Financial Officer Ned Segal, Chief Legal Officer Vijaya Gadde and General Counsel Sean Edgett.
In March 2024, these former executives sued Musk and his rebranded
Court documents were filed last week, and first reported The Verge On Wednesday, it was revealed that Musk and Ax had reached a settlement in the matter that requires “certain conditions be met.”
The documents did not include the settlement amount. Independent Attorneys for Musk and the plaintiffs have been contacted for comment.
Musk agreed to buy Twitter in April 2022, but months later, he said he was going to back out of the acquisition. Twitter even sued the tech mogul to pressure him into completing the deal.
After closing the $44 billion deal, Musk immediately fired Agarwal and other top employees. According to his lawsuit, officials accused Musk of attempting to avoid paying more money in order to alienate a group toward which he had “particular anger.”
“Because Musk decided he did not want to pay Plaintiffs’ severance benefits, he fired them without reason, then created a bogus reason and employed employees at his various companies to maintain his decision,” the group said in the lawsuit.
The lawsuit cites Walter Isaacson’s biography of Musk, which says the tech tycoon closed the Twitter deal a day early to prevent executives from hearing his stock options vest.
Isaacson quoted Musk as saying that “there was a two hundred million difference between closing the cookie jar tonight and closing it tomorrow morning.”
In August, it was announced that Musk and Ax had reached an agreement “in principle”. $500 million lawsuit About 6,000 other laid off employees were laid off.
The lawsuit, filed by Courtney McMillian, who oversaw Twitter’s employee benefits programs, and Ronald Cooper, who was an operations manager, claimed that most employees were expected to receive two months of their base salary and one week of pay for each full year they remained on the job, but were only offered one month of severance pay and many laid-off employees received no additional compensation. reuters Informed.