Elon Musk's X Corp has settled with four former top Twitter executives, including ex-CEO Parag Agrawal, ending a high-profile lawsuit over $128 million in unpaid severance following Musk's 2022 takeover of the social media platform.
Musk, X Corp Settle $128 Million Severance Dispute
According to a filing in San Francisco federal court last week, Musk and X Corp reached an undisclosed settlement with Agrawal, former Chief Financial Officer Ned Segal, former Chief Legal Officer Vijaya Gadde and former General Counsel Sean Edgett, reported Reuters.
A federal judge on Oct. 1 delayed filing deadlines and hearings to allow time for the agreement to be finalized.
The lawsuit accused Musk of denying the executives one year's salary and stock compensation owed under long-standing contracts.
The plaintiffs said Musk falsely accused them of misconduct and terminated them after they sued him for attempting to back out of his $44 billion deal to acquire Twitter.
Musk and X have denied wrongdoing, claiming the executives were fired over performance issues.
Follows Separate $500 Million Layoff Settlement
The settlement comes just weeks after X agreed to pay a separate group of former employees who claimed they were collectively owed $500 million in severance after mass layoffs.
The cases are part of a broader wave of litigation Musk has faced since acquiring Twitter and rebranding it as X. After the takeover, Musk cut more than half of the company's workforce as part of his plan to transform the platform into an "everything app."
Earlier this year, Musk's AI venture xAI acquired X in an internal transaction valuing the combined entity at $113 billion.
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