After Elon Musk completed the $44 billion acquisition of Twitter in 2022, he dismissed four top executives: Parag Agrawal (CEO), Ned Segal (CFO), Vijaya Gadde (Chief Legal Officer), and Sean Edgett (General Counsel).
The former executives claimed they were terminated without proper cause and did not receive the severance packages they were promised, totaling $128 million. These packages reportedly included one year’s salary and stock options. They argued that the dismissals were intended to avoid paying out these agreed-upon benefits.
Settlement Details
On October 1, a federal judge extended the deadline for filings and postponed a hearing to allow both parties to finalize the settlement negotiations.
Other Legal Challenges
This lawsuit is one of several legal challenges Elon Musk and X Corp have faced since the Twitter acquisition. Earlier in August 2025, X Corp also settled another lawsuit filed by rank-and-file Twitter employees seeking $500 million in unpaid severance.
Representatives for X Corp and the former Twitter executives have not publicly commented on the settlement. However, court filings indicate that the dispute was resolved outside of court, allowing both sides to avoid a lengthy and complex trial.