Elon Musk has faced a significant setback in his efforts to dismiss a lawsuit filed by former Twitter ex-CEO Parag Agrawal. Agarwal is seeking severance benefits. The lawsuit was initiated in March. The lawsuit claims that Musk deliberately terminated Agrawal and others.
Other personalities included former Chief Financial Officer Ned Segal, Legal Head Vijaya Gadde, and General Counsel Sean Edgett. Agarwal has effectively blocked them from receiving their severance packages.
Agrawal and the other executives contend that they deserve severance equivalent to one year’s salary and unvested stock awards based on the acquisition price. Their complaint also cites a statement from Musk’s biography by Walter Isaacson.
In this biography, Musk reportedly mentioned a “$200 million differential”. It hinged on the timing of the acquisition’s closure. It was said that the terminations were motivated by financial considerations.
This lawsuit adds to Musk’s ongoing legal issues regarding severance disputes with former Twitter employees. This lawsuit includes a previous arbitration in September. A laid-off employee was granted unpaid severance that could set a precedent for similar claims.
US District Judge Maxine Chesney’s decision permits Agrawal and his fellow executives to move forward with their lawsuit. They have extended Musk’s legal challenges related to his $44 billion Twitter acquisition. It has now been rebranded as X Corp.
