Former CEO Parag Agrawal and three other former top Twitter executives sued Elon Musk, CEO of X (formerly Twitter) for over $128 million in combined unpaid severance, according to a lawsuit filed on Monday.
A report by news agency Reuters said that the lawsuit was filed in federal court in San Francisco. This new lawsuit is the latest in a series of legal challenges the billionaire faces after he acquired the social media company for $44 billion in October 2022.
Along with the former CEO Parag Agrawal, Ned Segal, Twitter’s former chief financial officer; Vijaya Gadde, its former chief legal officer and Sean Edgett, its former general counsel are also plaintiffs in the lawsuit.
The lawsuit alleges that minutes after Musk took control of the social media company he fired the former executives and falsely accused them of misconduct and forced them out of Twitter after they sued the billionaire for attempting to renege on his offer to purchase the company.
The lawsuit claims that Musk denied executives severance pay they had been promised for years before he acquired Twitter, according to the lawsuit. Those suing claimed that each of them are owed one year’s salary and hundreds of thousands of stock options.
“This is the Musk playbook: to keep the money he owes other people, and force them to sue him,” the former executives said in the 39-page lawsuit.
X is already facing a pair of proposed class actions claiming it owes rank-and-file workers who were laid off after Musk’s acquisition at least $500 million in severance, and a third lawsuit by six former senior managers making similar claims. X has denied wrongdoing.
The company has also been sued previously for failing to pay its former public relations firm, landlords, vendors and consultants.
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