Four former Twitter executives, including the ex-CEO, Parag Agrawal have filed a lawsuit against Elon Musk, the owner of the company, for allegedly withholding over $128 million in severance payments.
What Happened: The executives, who were dismissed after Musk’s acquisition of Twitter in 2022, claim that Musk reneged on their severance payments, reported Bloomberg.
The lawsuit, filed in a federal court in northern California on Monday, alleges that Musk displayed a “special ire” towards them after taking over the social media platform.
This ire was publicly expressed by Musk, who vowed to withhold their severance to recover approximately $200 million from the $44 billion deal.
"Under Musk's control, Twitter has become a scofflaw, stiffing employees, landlords, vendors, and others. 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," lawyers said in the 38-page complaint.
Why It Matters: Twitter, now rebranded X by Musk, has been the subject of multiple lawsuits for various labor and workplace violations, including the failure to pay severance to thousands of laid-off employees.
Upon assuming control of Twitter, Musk promptly dismissed multiple high-ranking executives, including Vijaya Gadde, who served as the company’s foremost legal and policy official; Ned Segal, the chief financial officer; and Sean Edgett, the general counsel of Twitter.
The company has also been accused of not paying millions owed to vendors and landlords while attempting to maintain financial solvency.
Photo Courtesy: Shutterstock.com
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
