Former Twitter CEO Parag Agrawal Sues Elon Musk For $128 Mn: Here's Why

Former Twitter CEO Parag Agrawal, alongside three other top executives, has taken legal action against the new company head, Elon Musk, seeking $128 million (₹1,061 crore) in unpaid severance.

What to know: This legal battle stems from Musk’s public refusal to pay out a combined severance of approximately $200 million (₹1,658 crore), following his $44 billion acquisition of the social media giant, now known as X, in 2022—a move that led to their dismissal.

The lawsuit accuses Musk of turning Twitter into an entity that evades financial obligations to employees, landlords, and various associates under his leadership. Agrawal and his team argue that Musk’s approach to business, characterized by non-payment and a perceived immunity to rules due to his wealth and influence, has led to this confrontation.

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The backdrop of this legal skirmish is Musk’s takeover of Twitter, after which he terminated the employment of Agrawal and other senior figures like Vijaya Gadde, Ned Segal, and Sean Edgett. These executives had played a pivotal role in holding Musk accountable to complete his purchase of Twitter after he initially sought to withdraw.

Despite agreements for significant severance payouts — with Agrawal alone expected to receive around $50 million (₹415 crore) — these promises remain unfulfilled. This lawsuit comes amid other accusations against Twitter, involving severance non-payment to numerous employees laid off in the wake of Musk’s takeover.

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Posted In: NewsLegalTechElon MuskParag Agrawal