Elon Musk and his company X Corp. have agreed to settle a lawsuit brought by four former top Twitter executives who claimed they were owed $128 million in severance pay after Musk acquired the platform and dismissed them. The settlement was filed in San Francisco federal court and is now awaiting finalization under court supervision.
The executives—Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett—allege that Musk terminated them citing misconduct, in order to avoid paying the severance they were contractually promised. The plaintiffs argue they were entitled to one year’s salary plus stock options, consistent with severance terms established before the acquisition. Musk and X have denied wrongdoing, maintaining that the dismissals were performance-related.
A federal judge recently postponed deadlines and hearings to give both parties time to finalize the terms. The settlement closely follows another case in August in which X agreed to resolve a $500 million lawsuit filed by many other former Twitter employees over severance disputes following mass layoffs.
This legal resolution is one of several challenges Musk has faced over his takeover of Twitter and its transformation into X. While the full financial or legal terms of the settlement remain undisclosed, it signals an effort to close another chapter in lingering disputes surrounding the acquisition and executive departures.
