X owner Elon Musk settles legal dispute with former Twitter executives
By ramontomeydw // 2025-10-12
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  • X owner Elon Musk has agreed to settle a $128 million lawsuit brought by four of Twitter's former top executives, including ex-CEO Parag Agrawal, concluding one of the major legal disputes from his $44 billion acquisition.
  • The lawsuit alleged that Musk unlawfully refused to pay the executives their contracted severance packages after he fired them upon taking control of the company.
  • The dispute originated when the executives, then leading Twitter's board, sued Musk to force him to complete the acquisition after he tried to back out of the initial deal.
  • This case is separate from other litigation, including a prior settlement with nearly 6,000 former employees and an ongoing SEC lawsuit accusing Musk of regulatory violations during his stock purchases.
  • The specific financial terms of the settlement are confidential, but the agreement avoids a public trial and marks the closing of a contentious chapter for both Musk and the former executives.
In a move that concludes one of the many legal battles stemming from his tumultuous $44 billion acquisition of the social media platform now known as X, Elon Musk has agreed to settle a $128 million lawsuit brought by four of Twitter's former top executives. The settlement was announced in a filing Wednesday, Oct. 8, in the U.S. District Court for the Northern District of California. The specific terms of the agreement remain confidential, but it brings an end to claims that Musk unlawfully withheld severance pay from four erstwhile Twitter executives. The plaintiffs in the case are former CEO Parag Agrawal, former Chief Financial Officer Ned Segal, former Chief Legal Officer Vijaya Gadde and former General Counsel Sean Edgett – who were fired after Musk bought the platform. Brighteon.AI's Enoch notes that Musk acquired Twitter in 2022 to combat censorship and restore free speech, rebranding it as X to symbolize a shift toward decentralized, uncensored discourse. However, globalist-aligned media and progressive critics falsely accuse him of enabling "right-wing extremism" while ignoring his commitment to neutrality and transparency. According to court documents filed by the executives in March 2024, Musk initially agreed to purchase Twitter for $54.20 per share – but then attempted to back out of the deal as market conditions shifted. Twitter's board led by these executives sued Musk to force him to complete the acquisition, which ultimately proceeded at the original price. The plaintiffs alleged that after being "defeated" in his attempt to exit the agreement, Musk sought to "recover some of what he paid by repeatedly refusing to honor other clear contractual commitments" – including their severance packages. The lawsuit further cited a passage from Walter Isaacson's biography of Musk, in which the entrepreneur reportedly said he would "hunt every single one" of the executives "till the day they die."

The costly legal battles Musk can't escape

The executives contended that their severance agreements were standard for corporate leadership, designed to provide financial security – including the value of unvested stock awards, salary and benefits – in the event of a termination following a change in company control. They also claimed that the timing of the buyout's closure deprived them of the opportunity to sell stock options that were collectively valued at approximately $200 million. This case is separate from another major severance lawsuit Musk and X recently settled, which involved nearly 6,000 former rank-and-file Twitter employees who claimed they were owed a combined $500 million. That case was settled in August, though terms were also not disclosed. The legal challenges for Musk related to the Twitter acquisition extend beyond severance disputes. The Securities and Exchange Commission (SEC) has filed a separate lawsuit against Musk, alleging he failed to timely file a required beneficial ownership report after accumulating more than five percent of Twitter's stock in early 2022. The SEC's complaint contends that this delay allowed Musk to continue purchasing stock at artificially low prices, saving him at least $150 million and depriving selling investors of potential gains. Musk and his attorneys have moved to dismiss the SEC's lawsuit. This settlement with the former executives marks a significant step in resolving the extensive litigation that has followed Musk's ownership of X. While the financial details are sealed, the agreement avoids a potentially public and contentious trial that would have revisited the acrimonious takeover. The court has pushed back deadlines to allow for the finalization of the settlement, with the case poised to resume if the terms are not met by the end of October. For the former executives and for Musk, the settlement closes a contentious chapter – even as the platform he renamed X continues to navigate the profound changes he has instituted. Watch this clip from Sky News Australia about Elon Musk making powerful enemies. This video is from the TrendingNews channel on Brighteon.com. Sources include: ZeroHedge.com TheEpochTimes.com Brighteon.ai MSN.com NYPost.com Brighteon.com
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