Legal breakthrough ends years-long battle over unpaid compensation following Twitter takeover
Elon Musk has officially reached a settlement with a group of former Twitter executives who sued him for more than $128 million in a dispute over unpaid severance packages. The legal battle stemmed from Musk’s mass firing of top Twitter leadership following his $44 billion acquisition of the social media platform in October 2022.
The executives — Parag Agrawal (former CEO), Ned Segal (CFO), Vijaya Gadde (Chief Legal Officer), and Sean Edgett (General Counsel) — filed their lawsuit in March 2024, accusing Musk of deliberately avoiding severance obligations after taking control of Twitter, now known as X. According to court filings obtained by The Verge, both parties recently reached a settlement that includes undisclosed terms and conditional agreements.
In their complaint, the former executives alleged that Musk fired them “without cause” and fabricated justifications to block their compensation. The lawsuit cited biographer Walter Isaacson’s account, which claimed Musk expedited the deal’s closing by one day to prevent executive stock options from vesting — a move that could have cost him up to $200 million more.
This new agreement follows another major settlement in August 2025, when Musk and X resolved a $500 million class-action lawsuit involving around 6,000 ex-Twitter employees who were terminated without receiving their promised severance pay. That case was led by former benefits manager Courtney McMillian and operations manager Ronald Cooper, who claimed Musk’s team underpaid or completely withheld contractual severance benefits.
While the financial details of this latest executive settlement remain confidential, the resolution marks another step in Musk’s ongoing efforts to close multiple legal disputes tied to his controversial Twitter takeover.
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