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Elon Musk Sued By Former Twitter Executives For Severance


The checklist of former Twitter staff, landlords and distributors suing the social media platform and Elon Musk is rising, with 4 ex-executives submitting a lawsuit collectively searching for greater than $128 million in unpaid severance.

The executives, together with former chief government Para Agrawal and different high officers who engineered a lawsuit in opposition to Musk after he tried to again out of the $44 billion deal, allege in a criticism filed on Monday in California federal courtroom that they had been fired for gross negligence or willful misconduct in a bid to deprive them of advantages. They accuse Musk of holding a “particular ire” in opposition to them for forcing him to observe by way of with the acquisition.

The lawsuit is believed to be a minimum of the thirtieth in opposition to X, previously often known as Twitter, over refusal to pay. After taking the helm, Musk proceeded to scrub home by ousting a number of executives and roughly half of its staff. A number of ex-employees have sued, claiming that they weren’t paid severance on their approach out, in addition to distributors for nonpayment.

“That is the Musk playbook: to maintain the cash he owes different individuals, and drive them to sue him,” states the criticism from Agrawal, which additionally names former firm executives Ned Segal, Vijaya Gadde and Sean Edgett as plaintiffs. “Even in defeat, Musk can impose delay, problem, and expense on others much less in a position to afford it.”

In line with the criticism, Musk devised a scheme to stiff the officers of severance by accelerating the deal’s shut and manufacturing faux “trigger” terminations earlier than they may resign and gather their advantages. Their termination letters asserted that they had been being fired for failure to cooperate with a authorities or inner investigation however didn’t establish particular claims.

However unknown to Musk, the executives’ contracts contained commonplace “good motive” provisions that triggered their rights to advantages, the swimsuit says. A kind of situations included Twitter changing into a privately-held firm.

Final 12 months, the corporate denied the executives’ claims for severance, based on the criticism. They had been informed that they had been fired for gross negligence and willful misconduct, primarily for paying retention bonuses and success charges to an unidentified and redacted celebration within the criticism for “their work in negotiating, litigating and shutting the acquisition.” The celebration is prone to be Wachtell Lipton Rosen & Katz, which represented the corporate in forcing Musk to observe by way of along with his acquisition of the platform. Final 12 months, Twitter sued the agency for allegedly making the most of a consumer “left unprotected by lame duck fiduciaries who had misplaced their motivation to behave in Twitter’s finest curiosity pending its imminent sale.” It seeks restitution for a $90 million invoice.

The criticism brings claims for violations of the Worker Retirement Revenue Safety Act. The executives are represented by Dave Anderson, who served as the highest prosecutor for the Northern District of California kind 2019 to 2021.




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