A group of former Twitter executives has filed a $128 million lawsuit against Musk and X for denying severance pay
A group of former Twitter executives, including the former CEO, have filed a lawsuit against Elon Musk and X over millions of dollars in unpaid severance pay.
Here's What We Know
The claims arise from the chaotic circumstances that arose during Musk's acquisition of the company in October 2022. After Musk bought Twitter, he immediately fired several executives, the company's CFO and general counsel. According to them, Musk was outraged by their involvement in court cases that affected the company's expansion deal. These former executives are now seeking severance pay of around $128 million in court.
The lawsuit cites Musk's biographer, who claims that Musk rushed the Twitter deal one day early to be able to fire the executives before their final stock options vested. According to the journalist, this move allowed Musk to save about $200 million.
It is also alleged that Musk uses his wealth and power to avoid paying severance packages and treat those who disagree with him rudely. Representatives of X have not yet commented on the lawsuit.
This is not the first time that former Twitter employees have gone to court over unpaid severance pay. Earlier, a similar lawsuit claimed the company's debt to former employees was more than $500 million. It is noted that the corporation has unpaid legal bills.
Source: Bloomberg
