Elon Musk Reaches Settlement with Former Twitter Execs Over $128 Million Severance Dispute

Elon Musk and X Corp. have reached a confidential settlement with four former Twitter executives who claimed they were unlawfully denied $128 million in severance following Musk’s 2022 takeover of the platform.

The lawsuit, filed by former CEO Parag Agrawal, CFO Ned Segal, legal chief Vijaya Gadde, and general counsel Sean Edgett, accused Musk of engineering their firings to avoid contractually owed compensation. Each sought a year’s salary and stock options they say were guaranteed prior to Musk’s acquisition.

While the terms of the settlement remain undisclosed, a federal court filing last week confirmed both parties had reached a resolution. A judge subsequently delayed hearings and filing deadlines to give time for finalizing the agreement.

This is the latest in a string of legal battles Musk has faced since buying Twitter for $44 billion and rebranding it as X. In a separate case, X Corp. agreed to settle a $500 million severance lawsuit brought by laid-off rank-and-file employees earlier this year.