Parag Agrawal, Other Ex-X Employees Slap Elon Musk With Lawsuit Over Unpaid Severance Worth $128 Million

Citing a "Musk playbook" aimed at retaining owed funds and compelling legal action, the former executives emphasised their grievances in a 39-page lawsuit.

The lawsuit claims that shortly after Musk assumed control of Twitter, the executives were terminated and falsely accused of misconduct.

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Four former high-ranking executives of X (formerly known as Twitter) have initiated legal action against entrepreneur Elon Musk, alleging unpaid severance totalling over $128 million. The lawsuit, filed on Monday in federal court in San Francisco, adds to a string of legal battles the billionaire has faced since he acquired the social media platform for $44 billion in October 2022.

As reported by Reuters, among the plaintiffs are Parag Agrawal, former CEO of Twitter, along with Ned Segal, the former chief financial officer, Vijaya Gadde, the former chief legal officer, and Sean Edgett, the former general counsel.

'Musk Playbook'

The lawsuit claims that shortly after Musk assumed control of Twitter, the executives were terminated and falsely accused of misconduct, purportedly in retaliation for their previous lawsuit against Musk regarding his acquisition of the company. Furthermore, it alleges that Musk withheld promised severance payments, equating to one year's salary and hundreds of thousands of stock options for each executive.

Citing a "Musk playbook" aimed at retaining owed funds and compelling legal action, the former executives emphasised their grievances in a 39-page lawsuit.

This legal action comes amidst existing lawsuits against X, including proposed class actions by laid-off employees seeking $500 million in severance and claims from former senior managers. X, for its part, has denied any wrongdoing.

Musk's Ongoing Lawsuit Against OpenAI

Meanwhile, Musk himself has filed a lawsuit against OpenAI and its CEO, Sam Altman, accusing them of breaching their contract. The lawsuit, filed late Thursday in San Francisco, underscores Musk's contention that OpenAI has veered from its commitment to the public good by prioritising profit and commercial interests, particularly due to significant funding from Microsoft.

The conflict with OpenAI stems partially from Musk's concerns over Microsoft's influence on the organisation, which he perceives as exerting substantial control. Musk's resignation from OpenAI's board in 2018 reflects his longstanding unease with Microsoft's involvement. The lawsuit characterises OpenAI as essentially a "closed-source de facto subsidiary" of Microsoft.

These legal manoeuvres underscore a complex web of disputes and tensions in the tech industry, with high-profile figures like Elon Musk at the centre of multiple legal battles.