Elon Musk’s X Corp has reached a confidential settlement with four former senior executives of Twitter, including Parag Agrawal, bringing an end to a long-running legal dispute over unpaid severance compensation worth USD 128 million.
The settlement concludes months of courtroom proceedings between the company and the executives who had led Twitter before Musk’s takeover in 2022.
The four former executives — Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett — had filed a lawsuit claiming that X Corp, formerly Twitter, withheld severance benefits that were contractually owed to them. They argued that their removal was without proper cause and that they were entitled to a year’s salary along with stock-related compensation.
According to reports, the agreement was confirmed in a recent filing in a San Francisco court. While the exact settlement terms have not been made public, the development prompted the court to postpone upcoming filing deadlines and a scheduled hearing, allowing both sides to finalise the resolution.
The dispute dates back to the period immediately following Musk’s USD 44 billion acquisition of Twitter in 2022. Within days of taking control, Musk dismissed the platform’s top leadership, including Indian-origin Agrawal and Gadde, amid sweeping changes to the company’s operations and workforce. The executives later accused Musk of acting in bad faith and using allegations of misconduct to deny them their contractual payouts.
This is not the first legal challenge X Corp has faced over severance-related issues. Earlier this year, the company agreed to settle another lawsuit involving around USD 500 million in claims from former Twitter employees who were laid off after the acquisition.
The settlement with the former executives marks another chapter in the continuing legal and financial aftermath of Musk’s tumultuous takeover, which transformed Twitter into X and reshaped the company’s management, policies, and structure.
