Parag Agarwal Sued Elon Musk: Rs 1061.3 Crores for Not Paying Severance

By Consultants Review Team Tuesday, 05 March 2024

Elon Musk, the CEO of X (previously Twitter), was sued on Monday by former CEO Parag Agrawal and three other senior Twitter executives for unpaid severance benefits totaling more than $128 million.

The complaint was filed in federal court in San Francisco, according to a Reuters report. Following his $44 billion acquisition of the social media firm in October 2022, the billionaire is currently facing a number of legal issues, the most recent of which is this new case.

In addition to Twitter's former CEO Parag Agrawal, other plaintiffs in the case include Ned Segal, the company's former CFO, Vijaya Gadde, its former CLO, and Sean Edgett, its former general counsel.

According to the complaint, shortly after taking over the social media platform, Musk dismissed the previous executives, falsely accused them of wrongdoing, and pushed them to leave Twitter when they tried to sue the billionaire for trying to back out of his agreement to buy the business.

According to the lawsuit, Musk allegedly refused to provide executives the severance money they were promised years before he bought Twitter. The plaintiffs said that they are each entitled to a salary of one year and hundreds of thousands of stock options. In the 39-page complaint, the former executives said, "This is the Musk playbook: to keep the money he owes other people, and force them to sue him."

In addition to a third lawsuit brought by six former top managers with identical allegations, X is already facing two proposed class actions that assert it owes at least $500 million in severance pay to rank-and-file employees who were let go following Elon Musk's takeover. X has refuted any misconduct. The business has also been sued in the past for not paying vendors, consultants, landlords, and its former PR agency.

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