In 2022, after Elon Musk’s purchase of Twitter, the changes in top management have turned into a legal battle. Former Twitter executives, including former CEO Parag Agrawal, CFO Ned Segal, and Legal Affairs Director Vijaya Gadde, have filed a compensation lawsuit against Musk totaling approximately $200 million.
At the heart of the lawsuit are allegations that Musk managed the process of firing executives in a deliberately unfair and illegal manner after taking over Twitter. The executives claim that Musk fired them in retaliation for supporting the sale of Twitter and that he refused to pay their severance payments during this process.
Furthermore, it is alleged that Musk deliberately delayed the compensation payments to cover the legal costs incurred during the acquisition of Twitter, and prolonged this process to weaken the executives’ rights. The executives are requesting the court to expedite their cases and to expand the discovery process.
Compensations May Be at Risk
In the meantime, under Musk’s management, a 80% decrease in the value of Twitter is raising serious concerns about whether compensations will be paid. As such, while the former executives await the outcome of the lawsuit, thousands of former Twitter employees continue their legal battles against Musk with similar claims for compensations. This lawsuit continues to resonate significantly in the tech world.