Elon Musk’s X Settles Legal Dispute with Former Twitter Executives Over Severance Pay

Elon Musk and X Corp have resolved a contentious lawsuit filed by four former Twitter executives alleging wrongful denial of $128 million in severance pay following Musk's 2022 acquisition. The settlement terms remain confidential. Former CEO Parag Agrawal, CFO Ned Segal, and legal chiefs Vijaya Gadde and Sean Edgett claimed Musk fabricated misconduct allegations to void their contractual exit packages—a claim X Corp vehemently denies, citing performance-based terminations.

This case joins a growing list of legal challenges stemming from Musk's turbulent $44 billion takeover, which saw mass layoffs and Twitter's rebranding to X. The outcome underscores ongoing tensions between Musk's aggressive corporate restructuring and inherited employment obligations.