Former Twitter Executives Sue Elon Musk for Unpaid Severance

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In a legal saga surrounding Elon Musk’s acquisition of Twitter, four former executives, including ex-CEO Parag Agrawal, have filed a lawsuit against the billionaire entrepreneur, alleging $128 million in unpaid severance. The lawsuit, filed in California, accuses Musk of failing to honour severance agreements after acquiring the social media platform.

According to the complaint, Musk terminated the executives without cause and subsequently withheld their severance benefits, instead appointing individuals from his companies to uphold his decision. The plaintiffs assert that Musk’s claim of “cause” for termination lacks substantiation, as he failed to provide evidence of gross negligence or willful misconduct.

The lawsuit adds to the legal turmoil surrounding Musk’s handling of Twitter, which he renamed “X” after the acquisition. Last year, rank-and-file employees also filed a separate complaint seeking $500 million in unpaid severance. Musk’s response to these legal challenges remains undisclosed, and his legal representative has not commented on the matter.

This legal battle is just one facet of the controversies surrounding Musk’s takeover of Twitter, marked by a significant reduction in staff and operational changes. Musk’s actions have faced scrutiny, with the National Labour Relations Board alleging illegal firings at his SpaceX rocket company in response to worker criticism.

The acquisition of Twitter by Musk has been marred by challenges, including declining ad revenues and concerns over the proliferation of hate speech. Musk has attributed the revenue decline to anti-hate monitoring groups, launching lawsuits against organisations that published reports on extremist content. Amidst ongoing legal proceedings, the outcome of these disputes remains uncertain.