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The former head of Twitter and other executives sued Elon Musk for $128 million – they were not paid severance pay

A group of former Twitter executives, including former CEO Parag Agrawal, are suing Elon Musk and Company X over millions of dollars in severance pay. The claims date back to the chaotic circumstances surrounding Musk’s takeover of the company in October 2022.

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When Musk gained control of the company, his first move was to fire Agrawal, CFO Ned Segal, general counsel Vijaya Gadde and general counsel Sean Edgett. According to the lawsuit, Musk felt “particular rage” toward the group because of the role they played in the months-long legal battle that forced Musk to go through with the deal after he tried to back out of it.

 

According to the suit, Agrawal is entitled to severance pay of $57.4 million, Segal is entitled to $44.5 million, Gadde is entitled to $20 million, and Edgett is entitled to $6.8 million, for a total of about 128 million dollars. Looks like a shameless pile of money (thank you, toxic capitalism) despite the fact that Twitter was far from being highly profitable, but a contract is a contract.

 

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The suit gives Musk biographer Walter Isaacson’s account of events, explaining that Musk rushed to close the Twitter deal a day early to fire the executives “for cause” shortly before their final stock options were due to vest. According to Isaacson, Musk boasted that this legal maneuver saved him about $200 million.

 

Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to brutalize those who disagree with him. Because Musk decided he didn’t want to pay the plaintiffs severance, he simply fired them without cause, then made up a fake reason and appointed employees from his various companies to support his decision.

 

X did not respond to a request for comment about the lawsuit. It is noteworthy that this is not the first time that former Twitter employees are suing the company for non-payment of severance pay.

 

A separate lawsuit alleged that Twitter owes former employees more than $500 million in unpaid severance packages. Agrawal, Segal and Gadde also previously sued the company over unpaid legal fees resulting from shareholder lawsuits and other investigations that arose from Musk’s takeover.

 

Frankly speaking, there is no one to feel sorry for in this drama. Neither Musk, with his impulsive decisions. Nor, especially, overfed top managers who are knocking their feet because they did not receive platinum parachutes in addition to the gold ones.

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