Former Twitter CEO Parag Agarwal Sues Elon Musk For $128 Million In Severance

Why the Legal Battle?

The lawsuit, filed in federal court in northern California, accuses Musk of displaying "special ire" towards the executives and public vows to withhold their severance payments as a strategy to recover approximately $200 million from the $44 billion acquisition deal. Musk's contentious management style, as described in the 38-page complaint, portrays Twitter (renamed X) under his control as a company that evades financial responsibilities, refusing to pay employees, vendors, and landlords.

Upon taking over Twitter, Musk swiftly terminated several high-ranking executives, including Agrawal, Vijaya Gadde, Ned Segal, and Sean Edgett. The dismissals were not unexpected, considering these executives played pivotal roles in a lawsuit against Musk in 2022, compelling him to complete the purchase of the platform. Each executive was entitled to substantial payouts as part of the acquisition deal, with Agrawal alone set to receive around $50 million in severance.

The legal battle takes a more contentious turn as the executives accuse Musk of fabricating misconduct allegations to justify their abrupt firing and evade the promised severance payouts. The lawsuit argues that Musk's actions demonstrate a pattern of financial evasion and a belief that rules do not apply to him.

The lawsuit sheds light on broader accusations against Musk's leadership at X, with multiple lawsuits alleging labor and workplace violations, including unpaid severance to laid-off workers and outstanding dues to vendors and landlords. Musk's response on social media, using emojis and engaging with users in a dismissive manner, adds a layer of controversy to the situation.

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