Elon Musk and X Corp. have agreed to settle a lawsuit by four former Twitter executives who said they were owed $128 million in severance.
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Settlement reached
Court filings show the parties filed a deal in San Francisco federal court last week, but the terms were not disclosed. A federal judge on Oct. 1 paused several deadlines and a scheduled hearing to let the sides finalize the agreement.
The settlement resolves claims that Musk and X withheld roughly $128 million in promised severance after his 2022 takeover of Twitter. X and Musk have denied wrongdoing and maintained the executives were dismissed for performance reasons.
Background and next steps
The plaintiffs are former CEO Parag Agrawal, ex-CFO Ned Segal, former chief legal officer Vijaya Gadde, and former general counsel Sean Edgett. They sued in 2024, saying each was contractually owed one year’s salary and substantial stock-option awards that were never paid.
Reporting indicates the settlement is conditional. If Musk fails to meet unspecified conditions in the near term the case could be revived and litigation would continue. The agreement follows other post-takeover litigation, including an earlier settlement over unpaid severance claims by rank-and-file employees.
X and the executives did not provide additional comment in court filings.
