Former Twitter executives have launched a $128 million lawsuit against Elon Musk, accusing the prominent tech figure of neglecting to compensate them for severance following his acquisition of the social media platform.
Former Twitter Officials Launch $128M Lawsuit Against Elon Musk Over Severance Dispute
On Monday, a lawsuit was filed in California by four former Twitter executives, adding to a separate legal complaint issued a year earlier by rank-and-file employees seeking $500 million in unpaid severance.
The suit alleges that Elon Musk, the renowned tech mogul, failed to honour the severance benefits owed to the plaintiffs. It claims that Musk terminated their employment without valid reason and then fabricated cause to justify his decision. The complaint further asserts that Musk appointed employees from his various companies to validate his actions.
Among the plaintiffs are Parag Agrawal, Twitter's former CEO, former CFO Ned Segal, former general counsel Sean Edgett, and former chief legal officer Vijaya Gadde.
This legal action stems from Musk's decision to dismiss the executives following a series of widespread layoffs after his acquisition of Twitter for $44 billion in 2022. Musk contends that the executives were fired for cause, thereby relieving him of the obligation to provide severance payments.
The complaint challenges Musk's assertion, stating that "'Cause' is not 'board-approved business decisions that Musk dislikes'." It points out that Musk accused each plaintiff of 'gross negligence' and 'willful misconduct' without providing any supporting evidence.
Neither Musk nor Twitter has issued any public statements regarding the case. Musk's legal representative, attorney Alex Spiro, has yet to respond to requests for comment.
Elon Musk's Twitter Takeover Triggers Legal Battles and Content Woes
Elon Musk's unexpected takeover of Twitter, rebranded as "X," has triggered a wave of legal challenges. Earlier this year, the National Labor Relations Board filed a complaint, accusing Musk of unlawfully terminating eight employees from his SpaceX rocket company after they voiced concerns about his leadership.
Upon acquiring the social network, Musk wasted no time in implementing significant changes, including a sweeping round of layoffs. Reports indicate that Musk oversaw the dismissal of approximately 80% of Twitter's workforce, a move that sent shockwaves through the tech industry.
Musk himself disclosed these layoffs in a widely publicized interview, shedding light on the scale of his restructuring efforts within the company. This aggressive downsizing strategy underscores Musk's determination to overhaul Twitter's operations and steer it in a new direction under his leadership.
However, the mass layoffs also elicited criticism and raised concerns about the impact on affected employees and the future trajectory of the platform.
However, Musk's tenure at the helm of Twitter, now known as "X," has been marred by various controversies. The platform has grappled with declining ad revenues and a troubling surge in hate speech, exacerbated by Musk's decision to scale back content moderation efforts. Initially resistant to the acquisition, Twitter ultimately sued to compel its completion.
Elon Musk has singled out anti-hate monitoring groups, particularly Media Matters and the Center For Countering Digital Hate, placing blame on them for the platform's declining ad revenue. He alleges that their reports, which highlight instances of racist and extremist content on the platform, have played a significant role in driving advertisers away.
These accusations have sparked legal battles between Musk and the aforementioned groups. Musk has taken the offensive, directing lawsuits towards them in an attempt to counter their influence. Of particular note is a lawsuit filed against the Center For Countering Digital Hate, which is currently awaiting a decision from a California judge. The outcome of this legal battle could have far-reaching implications for content moderation efforts on social media platforms.