Parag Agrawal, the former CEO of Twitter, has filed a lawsuit against Elon Musk, seeking over $128 million in unpaid severance pay. The lawsuit, filed in the Northern District of California, accuses Musk of wrongfully terminating Agrawal and three other former Twitter executives without cause following his acquisition of the platform in 2022.
Agrawal contends that he and his colleagues are entitled to the severance payments stipulated in their contracts, which outlined specific conditions under which they could be fired without receiving compensation. These conditions, according to the lawsuit, did not encompass the circumstances surrounding their termination by Musk.
The lawsuit further alleges that Musk fabricated reasons for firing them, claiming "gross negligence" and "willful misconduct" on their part. The executives argue that these accusations are unfounded and merely a pretext to avoid honoring their contractual obligations.
They also point out that Musk's justification for withholding their severance, centered on the executives' alleged mismanagement of the company, should have been addressed before finalizing the acquisition.
"If Mr. Musk had concerns about the way Twitter was being managed, he had the opportunity to raise those concerns and, if necessary, walk away from the deal," the lawsuit states.
The lawsuit paints a picture of a strained relationship between Musk and the former Twitter leadership. It mentions instances where Musk publicly criticized the company's management and expressed a desire to make significant changes to its operations.
Furthermore, the lawsuit highlights the broader context of Musk's takeover of Twitter, which was marked by controversy and legal battles. It suggests that the dispute over severance pay may be part of a larger pattern of disagreements between Musk and the former company executives.
The lawsuit is likely to face scrutiny and potentially lengthy legal proceedings. Both parties are expected to present their arguments before a judge, who will ultimately decide whether the former Twitter executives are entitled to the claimed severance pay. The outcome of this case could have significant implications for Musk's leadership of the platform and set a precedent for future executive terminations under his direction.