Former top executives of Twitter, including ex-CEO Parag Agrawal, have taken legal action against Elon Musk, the CEO of Tesla, seeking over $128 million in unpaid severance. The lawsuit, filed in a San Francisco court, alleges that Musk unjustly terminated them and disregarded financial responsibilities.

Allegations Against Musk

The plaintiffs assert that under Musk’s leadership, Twitter, now renamed X, has neglected financial obligations, including payments to employees, landlords, and vendors. They claim that Musk has exhibited a cavalier attitude towards rules and obligations, using his wealth and power to bypass dissent.

Parag Agrawal sues Elon Musk over 8 million legal conflict

Details of Lawsuit

Apart from Agrawal, the lawsuit includes former CFO Ned Segal, ex-chief legal officer Vijaya Gadde, and former General Counsel Sean Edgett. They state that they are owed one year’s salary and stock options following their dismissal by Musk in late October 2022, after he acquired Twitter for $44 billion.

Background of Musk’s Acquisition

Musk’s purchase of Twitter followed a contentious dispute with top executives, prompting Twitter to take legal action to ensure Musk honoured the acquisition terms. The former executives allege that Musk fabricated instances of gross negligence to avoid paying severance, particularly referencing legal fees related to the acquisition.

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Ongoing Legal Battles

X, the rebranded Twitter, is already facing three other lawsuits from former workers seeking significant severance packages. Class action suits have been filed, claiming that rank-and-file workers are owed at least $500 million in severance payments.

Parag Agrawal and Elon Musk get in a legal conflict


The lawsuit against Musk by former Twitter executives sheds light on the legal turmoil surrounding Musk’s takeover of the social media platform. As the legal proceedings unfold, the outcome will have significant implications for both Musk and X (formerly Twitter), especially regarding the allegations of unpaid severance and disregard for financial responsibilities.