Elon Musk Settles $128M Severance Suit with Ex-Twitter Execs Over Firings

Elon Musk and X Corp. (formerly Twitter) have reached a settlement in a lawsuit filed by four former top executives—including ex-CEO Parag Agrawal—who claimed they were denied $128 million in severance pay after being dismissed following Musk’s acquisition of the company. 

The executives alleged that they were terminated under false misconduct claims to avoid fulfilling severance obligations that had been promised prior to the takeover.  The terms of the settlement remain undisclosed, and a federal judge has pushed back deadlines for finalizing the deal. 

Musk and X have denied any wrongdoing, maintaining the dismissals were performance-based. This case is one of several legal challenges arising from the chaotic transition and restructuring that followed Musk’s 2022 acquisition of Twitter.  Meanwhile, in August, X settled a separate $500 million class action lawsuit from former employees over unpaid severance from mass layoffs. 

The resolution marks a significant chapter in Musk’s battle over legacy contracts and compensation claims tied to his takeover strategy and post-acquisition management of the platform.