Former Twitter officers take legal action against Elon Musk, X for $128 million in severance

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Former Twitter execs sue Elon Musk, X for $128 million in severance

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Former Twitter executives consisting of CEO Parag Agrawal, Chief Financial Officer Ned Segal, head of legal Vijaya Gadde and General Counsel Sean Edgett submitted a brand-new claim versus Elon Musk and XCorp in federal court arguing that they are owed $128 million in overdue severance.

In their grievance, attorneys for the ex-Twitter executives state that after Musk backed himself into an offer to purchase Twitter, now X Corp., for $44 billion, he retaliated versus these executives personally, and attempted to recuperate a few of his costs by “repeatedly refusing to honor other clear contractual commitments.”

Musk and XCorp have actually been “stiffing employees, landlords, vendors, and others” considering that they took control of Twitter, the attorneys declare, an allusion to more than 25 supplier nonpayment claims submitted versus the social networks organization by business consisting of software application and provider and a property owner.

“Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him,” the grievance states.

The grievance likewise mentions remarks Musk made to his main biographer, Walter Isaacson, that “he would ‘hunt every single one of’ Twitter’s executives and directors ’till the day they die.'”

The ex-Twitter executives’ attorneys argue, “These statements were not the mere rantings of a self-centered billionaire surrounded by enablers unwilling to confront him with the legal consequences of his own choices. Musk bragged to Isaacson specifically how he planned to cheat Twitter’s executives out of their severance benefits in order to save himself $200 million.”

The fit, Agrawal et al v. Musk et al, was submitted in California’s Northern District and follows news that settlement talks in between XCorp and ex-Twitter supervisors broke down in an associated case in Delaware, Woodfield v. Twitter Inc., where $500 million in overdue severance to previous Twitter supervisors and engineers remains in disagreement.

Representatives for XCorp and Elon Musk did not instantly react to CNBC’s ask for remark.

Read the complete grievance listed below:

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