OAN’s Brooke Mallory
12:17 PM – Tuesday, March 5, 2024
A new complaint was filed in federal court against Elon Musk and the X Corp. by a group of former Twitter executives, including CEO Parag Agrawal, CFO Ned Segal, head of legal Vijaya Gadde, and general counsel Sean Edgett.
The executives claimed that they were still owed $128 million in unpaid severance.
The lawyers for the former Twitter executives went on to say in their complaint that Musk allegedly targeted these executives and attempted to recoup some of his costs by “repeatedly refusing to honor other clear contractual commitments” after he “forced himself into a deal” to purchase Twitter, now known as X, for $44 billion.
The lawyers also claim that since taking over Twitter, Musk and X Corp. have been “stiffing employees, landlords, vendors, and others,” referring to the more than 25 vendor nonpayment cases that have been brought against the social media company by businesses such as software and service providers, as well as a landlord.
“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 complaint says.
“These statements were not the mere rantings of a self-centered billionaire surrounded by enablers unwilling to confront him with the legal consequences of his own choices. Musk bragged to Isaacson specifically how he planned to cheat Twitter’s executives out of their severance benefits in order to save himself $200 million,” the former-Twitter exec’s attorneys continued.
The lawsuit, Agrawal et al. v. Musk et al., was filed in the Northern District of California in response to reports that settlement negotiations between X Corp. and former Twitter managers had broken down in Woodfield v. Twitter Inc., a related Delaware case involving the disputed $500 million in unpaid severance benefits to former Twitter managers and engineers.
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