This brings to a likely end the March 2024 launched $128 million severance and benefits claim from former CEO, Parag Agrawal, ex-CFO Ned Segal, former CLO Vijaya Gadde, and ex-General Counsel Sean Edgett.
To that end, a settlement conference has been scheduled before Magistrate Judge Nathanael M. Cousins for November 6.
Read the complaint from Twitter’s former CEO, chief financial officer, chief legal officer and general counsel against Elon Musk here.
“This is the Musk playbook: to keep the money he owes other people, and force them to sue him,” they insist.
If and when Musk or X do have something to say about today’s complaint, this post will be updated.
UPDATE: Elon Musk has made amends with some of his former top executives, but his reconciliation with Donald Trump may still be in its early stages.
A September 30 filing in federal court in San Francisco stated, “WHEREAS, the Parties have reached a settlement and the settlement requires certain conditions to be met in the near term.”. This likely ends the $128 million severance and benefits claim that was started in March 2024 by former General Counsel Sean Edgett, former CFO Ned Segal, former CLO Vijaya Gadde, and former CEO Parag Agrawal. The document further states, “WHEREAS, the Parties agree that postponing the existing case management deadlines will permit the Parties to meet conditions required under the settlement and will conserve the resources of the Court and the Parties.”.
As is customary in these situations, no information has been released to the public, but it appears that the litigious Musk had to write a check or two, if you understand what I mean.
In light of this, Magistrate Judge Nathanael M. Cousins has set a settlement conference for November 6. The billionaire’s spirit and money will undoubtedly be present in the courtroom, even though Musk is unlikely to be present.
PREVIOUSLY, MARCH 4, 2024 PM: Although it’s much longer than 140 characters, the severance and benefits lawsuit filed by four former Twitter executives against Elon Musk and X Corp makes a strong statement.
Give us the money you owe us!
In a complaint filed today in a federal court in northern California, former CEO Parag Agrawal, former CFO Ned Segal, former CLO Vijaya Gadde, and former General Counsel Sean Edgett total $128 million.
The somewhat redacted six-claim filing notes that Musk simply fired Plaintiffs without cause after deciding he didn’t want to pay their severance benefits. He then made up a reason and appointed staff from his various companies to support his decision.
Go here to read the complaint against Elon Musk filed by the former CEO, CFO, CLO, and general counsel of Twitter.
The four executives then criticize Musk’s stance on former employees and others, citing the “staggering number of lawsuits from its vendors and service providers across a range of industries” and the growing number of lawsuits from “thousands of non-executive former employees” against Musk and the social media platform, formerly known as Twitter, since the volatile billionaire forced the company to sell for $44 billion in 2022. They insist that Musk’s strategy is to keep the money he owes others and pressure them to sue him. Musk can still cause inconvenience, delay, and cost to those who cannot afford it, even if he loses. “”.
Therefore, the once-dominant tech lords, represented by the San Francisco and Chicago offices of Sidley Austin, are using Musk’s own words against him. Musk is frequently sued and involved in litigation.
The 38-page complaint claims that Musk promised his official biographer, Walter Isaacson, that he would “hunt every single one of” Twitter’s executives and directors “till the day they die.”. “A self-centered billionaire surrounded by enablers who were unwilling to face the legal repercussions of his own decisions was not the only one who made these statements. In order to save himself $200 million, Musk boasted to Isaacson about his specific plan to defraud Twitter executives of their severance benefits. “.”.
The crux of the matter is that each of Agrawal, Segal, Gadde, and Edgett’s contracts contained “good reason” clauses that guaranteed them a complete payout in the event that a situation such as Twitter ceasing to be “a publicly traded entity”—which happened with Twitter in October 20222—occurred. When Musk and his henchmen showed the door to Agrawal (who alone was eligible to receive a $60 million golden handshake), Segal, Gadde, and Edgett, they apparently forgot to include those clauses.
Musk had nothing to say about Mondays’ suit after spending the day expressing his happiness over the most recent Space X launch and his dismay over immigration statistics. Deadline asked X representatives to comment on the action taken by former CEO Agrawal, former CFO Segal, former legal/policy chief Gadde, and former general counsel Edgett. X representatives did not reply.
This post will be updated regardless of Musk’s or X’s response to today’s complaint.
