Elon Musk agreed to pay an undisclosed amount to end a dispute with four former Twitter executives who were demanding $128 million for his dismissal at the end of 2022, the same day he bought the social network, which became X, according to a court document made public on Wednesday.
When the billionaire, one of the world’s richest men, bought Twitter for $44 billion on Oct. 27, 2022, he immediately fired former boss Parag Agrawal, CFO Ned Segal, and legal and legal directors Vijaya Gadde and Sean Edgett, accusing them of “gross negligence” and “willful misconduct.”
The four executives, alleging a termination without cause, followed by unsuccessful attempts to “invent” grievances against them, took the case to federal court in San Francisco in March 2024, demanding $128 million from Elon Musk. They accused him, in particular, of having precipitated the acquisition of Twitter to deprive them of $200 million in stock options that would be returned to them the next day.
The amount that Elon Musk, also the head of Tesla and SpaceX, agreed to pay to avoid trial is not specified in the judge’s document that recorded the provisional agreement, subject to several conditions. If they are not met, the magistrate will resume examining the case on October 31
Following the tumultuous 2022 acquisition, accompanied by the layoff of almost two-thirds of Twitter’s workforce, several complaints were filed by former employees or clients and subcontractors of the social network. In late August, Elon Musk and in March, the billionaire transferred ownership of Twitter, now X, to his generative artificial intelligence (AI) startup, xAI.
Source: BFM TV
