Elon Musk's X Settles $128M Severance Lawsuit with Ex-Twitter Executives (2025)

Imagine the drama unfolding in the high-stakes world of tech billionaires and corporate takeovers—it's like a real-life thriller where promises are made, broken, and then settled in court. Elon Musk's X has just wrapped up a major lawsuit with four former top executives from Twitter, agreeing to pay out over $128 million in severance that was allegedly owed after Musk took over the company in 2022 and let them go. But here's where it gets controversial: the executives claim Musk unfairly accused them of misconduct and pushed them out as retaliation for their earlier lawsuit against him when he tried to back out of buying Twitter. This settlement isn't just about money—it's a peek into the intense power struggles that can erupt when a visionary like Musk reshapes an entire platform. And this is the part most people miss: understanding severance pay, which is essentially a financial safety net companies promise employees for a smooth exit, often including a year's salary and valuable stock options that could be worth hundreds of thousands each. For beginners diving into this story, think of stock options as a perk where employees get the chance to buy company shares at a set price, potentially turning into a fortune if the company succeeds—like betting on a winning horse in the stock market. The executives involved? Parag Agrawal, the ex-CEO who steered Twitter through turbulent times; Ned Segal, the former chief financial officer handling the books; Vijaya Gadde, the ex-chief legal officer navigating legal minefields; and Sean Edgett, the ex-general counsel advising on big decisions. Musk and X firmly deny any wrongdoing, insisting the firings were purely about performance issues, not personal vendettas. The settlement details remain under wraps, first surfacing in a court filing in San Francisco last week, and neither X nor the executives' lawyers have commented publicly on the specifics. To put this in perspective, this isn't Musk's first rodeo with severance disputes—back in August, X settled another case with everyday Twitter employees who were laid off en masse and claimed they were shorted $500 million in promised payouts. These legal battles are just one chapter in the saga of Musk's $44 billion acquisition of Twitter in 2022, where he slashed more than half the workforce and rebranded it as X, sparking debates about innovation versus employee rights. But here's the twist that might divide opinions: was Musk's aggressive overhaul necessary for Twitter's survival, or did it cross into unfair territory by reneging on long-standing promises? Some argue it was a bold move to streamline a bloated operation, while others see it as a billionaire flexing power at the expense of loyal staff. What do you think—does Musk deserve a pass for shaking things up, or should he be held accountable for broken commitments? Drop your take in the comments and let's discuss!

Elon Musk's X Settles $128M Severance Lawsuit with Ex-Twitter Executives (2025)

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