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Musk's X settles $128 million severance pay lawsuit with former Twitter executives

By Sophia Compton
FOX Business
Elon Musk
Published October 9, 2025 9:53 AM MST
Published October 9, 2025 9:53 AM MST
article

FILE-Elon Musk listens as President-elect Donald Trump addresses a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, D.C. (Photo by Andrew Harnik/Getty Images)

Elon Musk and X Corp have reached a settlement with four former Twitter executives who alleged they were not paid $128 million in severance pay following Musk’s 2022 acquisition of the company.

The terms of the settlement, announced in a San Francisco federal court filing last week, have not been made public. A federal judge on Oct. 1 postponed filing deadlines and a scheduled hearing to allow both parties to finalize the agreement.

MUSK'S X REACHES TENTATIVE SETTLEMENT IN $500 MILLION LAWSUIT OVER FIRINGS OF PLATFORM'S FORMER WORKERS

The lawsuit was filed by ex-CEO Parag Agrawal, former CFO Ned Segal, former chief legal officer Vijaya Gadde and former general counsel Sean Edgett. They claimed Musk falsely accused them of misconduct after they sued him for trying to back out of his agreement to buy the company.

Musk refused to provide the severance pay the executives were promised for years before his acquisition of Twitter, according to the lawsuit.

Each executive said they were owed one year’s salary plus significant stock option compensation.

ELON MUSK'S AI CHATBOT, GROK, GOES ON ANTISEMITIC TIRADE

X Corp and Musk have denied any wrongdoing and have maintained the executives were fired due to performance issues.

TWITTER'S ICONIC BIRD SIGN FROM FORMER SAN FRANCISCO HQ SELLS FOR NEARLY $35K AT AUCTION

This case follows another major settlement in August, when X agreed to settle a lawsuit filed by former Twitter employees, who argued they were owed $500 million in severance pay after mass layoffs.

In 2022, Musk acquired Twitter in a $44 billion deal.

X and lawyers for the plaintiffs did not immediately respond to FOX Business' request for comment.

Reuters contributed to this report.

Get the latest updates on this story at FOXBusiness.com


 

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