- Natalie Sherman
- new york business reporter
image source, Getty Images
Elon Musk is facing a lawsuit from former Twitter executives who claim he owes more than $128m (£100m) in unpaid severance pay.
Four executives, including former chief executive Parag Agrawal, accused Musk of “inventing a false cause for no reason” to avoid handing over funds when he took over Twitter Inc. (now Company X). He said he was fired.
They said the move was part of a “larger pattern” of refusing to pay former staff.
Musk did not immediately comment.
Agrawal filed the lawsuit along with former chief financial officer Ned Segal, former chief legal officer Vijaya Gadde and former general counsel Sean Egit.
In the lawsuit, they claim they are owed one year's worth of salary and stock awards under a retirement plan from several years ago. That totals more than $57 million for Mr. Agrawal. More than $44 million to Mr. Segal. More than $20 million to Mr. Gadde. and more than $6 million to Mr. Egit.
Musk bought Twitter in 2022 for $44 billion. The billionaire tried to walk away from the deal, but ultimately forced through the controversial deal under threat of litigation.
The company then moved to fire key leaders, including four executives, within minutes of closing the deal.
The four were told they were fired for “gross negligence and willful misconduct,” according to the complaint. An example is the approval of retention bonuses for Twitter employees, thousands of whom were also laid off after the acquisition.
But the lawsuit says Musk was angry that he was forced to complete the deal. He also claims he tried to avoid paying millions of dollars he owed executives by denying them severance plans that would have compensated them if they lost their jobs without cause.
Since then, the two sides have been fighting over funds and have now exhausted administrative procedures, the lawsuit states.
X previously said staff were paid full salaries. Mr Musk's lawyer Alex Spiro did not respond to the BBC's request for comment.
But in the lawsuit, executives accused Musk of turning the company into one that ignored the law and failed to pay its debts.
“Mr. Musk does not pay his bills, believes the rules do not apply to him, and uses his wealth and power to protect people with whom he disagrees,” according to a filing in federal court in California. He is committing violent acts against him.”
Last year, a former human resources manager at the platform filed a class action lawsuit alleging the company failed to pay about $500m (£385m) in severance pay to former employees.
Around 20 people who worked at the company in Ghana at the time of the takeover, which took place around 16 months ago, told the BBC in February that they had only recently received the money they were due.
The lawsuit filed by the four executives sought to portray Mr. Musk as someone who avoids debt payments and treats employees poorly.
“Mr. Musk's refusal to pay is part of a larger pattern of refusing to pay benefits and other compensation to former Twitter employees,” Mr. Agrawal and his former colleagues claim in the lawsuit.
