Elon Musk’s X, Ex-Twitter Executives Reach Settlement In $128 Million Severance Pay Lawsuit: Report

Elon Musk’s X Corp. (XCorp) has reportedly reached a settlement in a $128 million lawsuit brought by former top executives of Twitter, although the terms of the settlement have not been disclosed yet.

According to a Reuters report, the settlement was first announced in a filing in a San Francisco federal court last week. The plaintiffs in the case are former CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett.

The plaintiffs filed the lawsuit alleging that they were not paid $128 million in promised severance pay following the acquisition of the social media platform by Musk.

In August, Musk and X settled a separate $500 million lawsuit brought by former Twitter employees over severance pay, alleging that while a 2019 plan guaranteed that most workers would receive two months of their basic salary along with one week of pay for each completed year of service, Twitter only gave some of them one month of pay at most, while many were not paid anything.

Musk acquired Twitter in 2022 for $44 billion and subsequently rebranded the social media platform as X. He also laid off more than half of the company’s workforce in a bid to save costs.

Last week, a federal judge rejected Elon Musk’s bid to move a lawsuit brought forward by the U.S. Securities and Exchange Commission (SEC) to Texas concerning an alleged late disclosure of his stake in Twitter.

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