Elon Musk Settles $128 Million Compensation Lawsuit with Former Twitter Executives

Elon Musk Settles $128 Million Compensation Lawsuit with Former Twitter Executives

Elon Musk has agreed to settle a $128 million compensation lawsuit with four former Twitter executives, marking the end of a long-running legal dispute that began shortly after his $44 billion acquisition of the social media company in 2022.

The four executives. Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett had filed a lawsuit in March 2024, accusing Musk and X Corp of withholding benefits and compensation they were entitled to following the takeover.

According to recent court filings in San Francisco’s federal court, both parties have reached a confidential settlement agreement, with undisclosed terms and future obligations for Musk to fulfill within a specific timeframe. Although details remain sealed, reports suggest the agreement may include payment-related conditions that will need to be completed by October 31, 2025.

The former executives alleged that Musk’s actions during the acquisition process, including prematurely revealing Twitter’s valuation, deprived them of potential stock gains they would have earned had the transaction followed normal disclosure timelines. All four were dismissed immediately after the acquisition closed.

While the settlement indicates a potential end to the legal confrontation, the case could be reopened if Musk or X fail to meet the outlined conditions. For now, neither Musk nor representatives of X have provided public statements about the resolution.

The move could help Musk reduce ongoing legal tension surrounding his turbulent takeover of Twitter, but it also serves as a reminder of the lingering consequences from one of the most high-profile tech acquisitions in recent years.

 origin: Theverge