Ezrah Kashumbusha.
KAMPALA, March 05, 2024 | Former executives of Twitter, now rebranded as X, have initiated legal action against Elon Musk, the company’s current owner. The lawsuit, filed by ex-CEO Parag Agrawal, Chief Financial Officer Ned Segal, Chief Legal Counsel Vijaya Gadde, and General Counsel Sean Edgett, seeks over $128 million in unpaid severance following Musk’s acquisition of the social media giant.
The controversy stems from the abrupt dismissal of these executives on the very day Musk completed his takeover of Twitter. According to the plaintiffs, their removal was unjustified and executed without proper cause, suggesting that Musk aimed to avoid fulfilling severance obligations. They allege that Musk fabricated reasons to terminate their employment, subsequently appointing individuals from his other ventures to support this decision.
Central to the lawsuit is the claim that the executives were entitled to severance packages comprising a year’s salary and vested stock awards, calculated at Twitter’s acquisition price. The legal action criticizes Musk’s approach, asserting that any disputes over attorney fees or other payments should have been addressed by seeking to terminate the acquisition deal rather than withholding severance post-completion.
The lawsuit paints a grim picture of the operational environment under Musk’s stewardship, accusing him of flouting legal and contractual obligations towards employees, landlords, vendors, and others. It portrays Musk as utilizing his considerable wealth and influence to override dissent and sidestep regulations, creating a climate of disregard for established rules and agreements.
This legal battle throws a spotlight on the broader implications of Musk’s takeover for Twitter’s organizational culture and operational ethics. The former executives’ push for severance pay not only raises questions about the legality of their dismissal but also about the broader labor practices under the billionaire’s leadership. As the case progresses, it will likely offer insights into the challenges and controversies surrounding one of the most tumultuous acquisitions in recent tech history.
