The former Twitter CEO and three others claimed that billionaire Musk had defaulted on the payment of compensation and that the executive was fired after Musk bought the company in 2022.
Former executives said Musk showed them "after taking over the social ** platform in 2022."Particular angerThey have publicly vowed to withhold their termination compensation to recover about $200 million in the $44 billion deal, according to a lawsuit filed in federal court in northern California on March 4.
Parag Agrawal and others sued company owner Elon Musk,He was accused of owing more than $1 after they were fired from the company$2.8 billion in severance compensation.
According to Wall Street, according to Twitter filings with the U.S. Exchange Commission, Musk is obliged to provide more than $200 million in compensation to the three men.
According to the "** Parachute Compensation" clause in this document, the three will receive a total value of 1$27.5 billion** as severance package, with CEO Agrava receiving the highest amount at $59 million.
In addition, the three former Twitter executives receive a year's salary and health benefits. In 2021, Agrava's base salary was $62$30,000, and both Siegel and Gard have a base salary of $600,000. Overall, Gard received the most reimbursement when he left Twitter: nearly $75 million. Agrawa and Siegel followed with about $66 million and $67 million, respectively.
Twitter, where Musk changed his name to X, is accused of violating several labor and workplace rules, including failing to pay termination compensation to thousands of workers who were laid off in late 2022 and early 2023. The company is also accused of failing to pay millions of dollars in arrears to merchants and landlords while trying to maintain their financial health.
Lawyers for Agrawal and other former executives said in the 38-page pleading:"Under Musk's control, Twitter has become a go-getter, unpaid employees, landlords, businessmen and others. Musk doesn't pay his bills, thinks the rules don't apply to him, and uses his wealth and power to wantonly trample on anyone who disagrees with him. ”
A spokesperson for X declined to comment. Musk did not immediately respond to emails requesting comment.
After Musk took over Twitter, he immediately fired several other senior executives, including Twitter CEO Parag Agrawal; Vijaya Gad, Chief Legal and Policy Officer; Chief Financial Officer Ned Segal; and Twitter's General Counsel, Sean Egitt.
These dismissals were not surprising at the time. The executives were all key figures in Twitter's summer 2022 lawsuit, aimed at forcing Musk to complete a deal to buy the platform, after he tried to pull out.
As part of Musk's deal to buy the company, each executive should be paid a hefty sum that includes clauses to accelerate their unvested **rewards. Agrawal alone is expected to receive about $50 million in severance compensation.
The name of the case is Agrawalal VMusk, 24-cv-01304, U.S. District Court for the Northern District of California, San Francisco.
Notably, the lawsuit is just the latest in a series of legal challenges Musk has faced since taking over Twitter. Ever since he became the boss of the social ** company, there have been constant questions and challenges from employees, advertisers, and regulators to his decisions. Now, with the addition of a team of former executives, this legal battle around Twitter seems to be intensifying.
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