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Former Executives Parag Agarwal And Others Sue Twitter CEO Elon Musk In Lawsuit Over Alleged Nonpayment
Former senior Twitter executives claim they should get over USD 128 million in unpaid severance compensation in their lawsuit against Elon Musk and X Corp.
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Former executives Parag Agrawal, Vijaya Gadde, and others sue Elon Musk for $128 million
Former Twitter executives are suing X Corp. and Elon Musk. Together, the four former executives filed a lawsuit demanding unpaid severance pay of more than $128 million. Four people filed a lawsuit on Monday, including General Counsel Sean Edgett, Chief Financial Officer Ned Segal, Chief Legal Counsel Vijaya Gadde, and Former CEO of Twitter Parag Agrawal.
Former Executives claim they were fired for willful wrongdoing
In a lawsuit filed on Monday in federal court in California, the executives, who devised the action against Musk after he attempted to back out of the $44 billion deal, claim they were fired for willful wrongdoing or gross negligence to deprive them of benefits. They allege that because they made him complete the deal, Musk has a "special ire" towards them.
This is reportedly the 31st case against X, formerly known as Twitter, regarding its nonpayment. Musk removed many executives and about half of the company's workforce after taking over. In addition to vendors for unpaid invoices, several former workers have filed lawsuits alleging they were not given severance compensation at the time of their departure.
As per the lawsuit, Musk came up with a plan to defraud the officers of severance pay by hastening the deal's conclusion and fabricating fictitious "cause" terminations before their resignation and receipt of benefits. Although their termination letters made no mention of particular allegations, they stated that they were being let go for not assisting a government or internal inquiry.
However, the lawsuit claims that Musk was unaware of the customary "good reason" clauses in the executives' contracts, which activated their entitlement to perks. Twitter has to become a privately held firm as one of those requirements.
As to the case, the executives' severance claims were rejected by the corporation last year. They were informed that their termination was due to extreme carelessness and deliberate wrongdoing, namely for paying success fees and retention bonuses to a party that had been named but had been removed from the complaint for "their work in negotiating, litigating and closing the acquisition."
Wachtell Lipton Rosen & Katz is probably the party in question because it acted on behalf of the business in pressuring Musk to complete his purchase of the platform. The complaint alleges that the Employee Retirement Income Security Act has been violated. Dave Anderson, who led the Northern District of California's prosecution team from 2019 to 2021, is the executive's representative.
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