Elon Musk agrees to $128m settlement with former Twitter executives Published 6 hours ago on October 9, 2025By Ahmed Boulor
Elon Musk has agreed to settle a $128 million lawsuit filed by several former Twitter executives, including ex-CEO Parag Agrawal, CFO Ned Segal, and top legal counsel Vijaya Gadde.
The suit, lodged earlier this year, accused Musk of wrongfully withholding severance payments promised under their contracts after he took over the company—now rebranded as X—in 2022.
Musk fired CEO Parag Agrawal, CFO Ned Segal, and prominent attorneys Sean Edgett and Vijaya Gadde as one of his first actions after purchasing Twitter.
They assert that the reason the four executives never received severance money was because they attempted to keep Musk to his $44 billion pledge when he attempted to back out of purchasing the business.
According to Musk’s book by Walter Isaacson, which is cited in the case, Musk would “hunt every single one” of Twitter’s C-suite “till the day they die.”
Reports say Musk’s team initially claimed the executives were fired “for cause,” thereby invalidating their severance. However, legal experts noted that internal communications and board records undermined that argument, prompting Musk to pursue a settlement rather than risk a costly trial.
The deal, said to be finalized within weeks, marks the end of a long-running dispute that symbolized Musk’s turbulent early days at Twitter. It also underscores a broader effort by Musk to clean up outstanding legal battles as he steers X toward what he calls a “fully monetized everything app.”
