Legal Battle Continues for Elon Musk: Faces $128 Million Lawsuit This Time
The legal saga involving former Twitter employees, landlords, and suppliers suing the social media platform and Elon Musk is escalating. Four former executives have filed a lawsuit seeking over $128 million in unpaid severance pay. Get all the details below.
After taking the helm, Musk began a cleanup by dismissing several executives and laying off about half of the employees, leading to some former employees claiming they hadn't received their severance pay and filing lawsuits.
Former Vice President Para Agrawal and other top executives are among those who filed a lawsuit against Musk after he attempted to withdraw from a $44 billion deal.
These executives allege in a complaint filed in California federal court on Monday that they were terminated due to Musk's alleged negligence or deliberate fault, and their rights were sought to be deprived. They accuse Musk of holding a 'special animus' against them.
This lawsuit, due to Musk's failure to make payments, is said to be the 30th lawsuit against X, which we know as Twitter.
Last year, it's noted that the company rejected executives' severance pay claims. According to the petition, executives were not informed in a document about 'negotiation, litigation, and closing the purchase.' Additionally, they were allegedly terminated primarily due to major negligence and intentional wrongdoing, such as 'ignoring' situations like paying protection premiums and success fees for a censored party.
"As stated in Agrawal's petition, this is Musk's playbook: keeping the money he owes and forcing them to sue."
The petition also names former company executives Ned Segal, Vijaya Gadde, and Sean Edgett as plaintiffs. 'Even in defeat, Musk can impose delay, inconvenience, and expense on others who can tolerate it less.'
According to the lawsuit, Musk expedited the closure of the agreement and devised a scheme to produce fake "cause" terminations before resigning and collecting their rights to avoid paying their compensations.
Their termination letters, while not specifying certain claims, alleged they were terminated for not cooperating with government or internal investigations.
According to the petition, the executives' contracts included standard "just cause" provisions triggering their rights, one of which was Twitter being a private company.
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