Parag Agrawal, the former CEO of Twitter (now X), and a bunch of other top executives have been handed good news by a court in their case against X owner Elon Musk. As per a report, a judge has ruled that Agrawal and other high-ranking executives have the right to sue Musk, who allegedly fired them right as he took over the company to avoid paying them severance packages.
According to a report by Bloomberg, the judge is also overseeing another lawsuit brought by Twitter former core tech general manager Nicholas Caldwell who is seeking $20 million as lost severance compensation. On the same day, the judge denied a request by Musk’s lawyers to dismiss Caldwell’s claims.
Agrawal can go ahead and sue the billionaire for terminating their roles with the social media company. The former CEO is joined in the lawsuit by Vijaya Gadde, Twitter’s former chief legal officer; Ned Segal, the former chief financial officer; and Sean Edgett, the former general counsel.
The executives contended that Musk deliberately terminated them before they could officially resign, thereby depriving them of the compensation they were promised. They all assert that they are entitled to a year’s salary plus unvested stock awards valued at the acquisition price.
Their lawsuit cited a statement Musk made to his biographer, Walter Isaacson, in which he admitted his eagerness to finalise the deal to prevent “a $200 million differential in the cookie jar between closing tonight and doing it tomorrow morning.”
They executives also accuse Musk of fabricating reasons for their termination to avoid fulfilling severance obligations.
“Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him,” the executives said.
Musk is facing a web of legal conflicts, and disputes over employee compensation are a recurring theme. Following his acquisition of Twitter, which he renamed X Corp., Musk implemented drastic layoffs affecting thousands of employees as part of a major company overhaul.
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