Setback for Elon Musk As Parag Agrawal, Other Ex-Twitter Executives Can Pursue Severance Claims

Last Updated: November 03, 2024, 16:42 IST

The execs submitted a authorized motion in March, declaring that Musk decreased them off previous to they will formally tip down, therefore refuting them their agreed-upon severance bundles.

Elon Musk has really come throughout a lawful bother in his initiatives to forestall paying severance to Twitter’s earlier aged execs, that have been disregarded all through his 2022 buy of the enterprise. On Friday, a court docket dominated that earlier chief govt officer Parag Agrawal and numerous different magnates can search their insurance coverage claims that Musk terminated them precisely on the time of the acquisition’s closing to keep away from severance obligations.

The execs submitted a authorized motion in March, declaring that Musk decreased them off previous to they will formally tip down, therefore refuting them their agreed-upon severance bundles. They referenced Musk’s declaration to biographer Walter Isaacson, the place he shared necessity in sealing the deal to forestall a “$ 200 million differential in the cookie container in between closing tonight and doing it tomorrow early morning.”

Alongside Agrawal, former authorized head Vijaya Gadde, ex-CFO Ned Segal, and former normal counsel Sean Edgett declare they’re owed one 12 months’s wage and unvested inventory awards valued on the acquisition worth.

This lawsuit provides to Musk’s in depth authorized challenges associated to worker compensation following his Twitter takeover, now rebranded as X Corp. After Musk applied large-scale layoffs, many affected staff filed claims for unpaid severance, asserting that Musk had breached compensation agreements.

In July, Musk and X Corp. received a class-action lawsuit during which former staff sought $500 million in severance beneath the Employee Retirement Income Security Act. However, in a separate arbitration case in September, a former worker was awarded unpaid severance, which might set a precedent for related claims.

U.S. District Judge Maxine Chesney, overseeing the case, additionally denied Musk’s movement to dismiss a associated declare by Nicholas Caldwell, a former “core tech” fundamental supervisor that’s searching for $20 million for shed severance.

News firm Setback for Elon Musk As Parag Agrawal, Other Ex-Twitter Executives Can Pursue Severance Claims