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Former Twitter executives together with CEO Parag Agrawal, Chief Monetary Officer Ned Segal, head of authorized Vijaya Gadde and Normal Counsel Sean Edgett filed a brand new lawsuit towards Elon Musk and X Corp. in federal court docket arguing that they’re owed $128 million in unpaid severance.
Of their criticism, legal professionals for the ex-Twitter executives say that after Musk backed himself right into a deal to purchase Twitter, now X Corp., for $44 billion, he took revenge towards these executives personally, and tried to recuperate a few of his bills by “repeatedly refusing to honor different clear contractual commitments.”
Musk and X Corp. have been “stiffing workers, landlords, distributors, and others” since they took over Twitter, the legal professionals allege, an allusion to greater than 25 vendor nonpayment lawsuits filed towards the social media enterprise by corporations together with software program and repair suppliers and a landlord.
“Musk would not pay his payments, believes the foundations do not apply to him, and makes use of his wealth and energy to run roughshod over anybody who disagrees with him,” the criticism says.
The criticism additionally alludes to feedback Musk made to his official biographer, Walter Isaacson, that “he would ‘hunt each single certainly one of’ Twitter’s executives and administrators ‘until the day they die.'”
The ex-Twitter executives’ legal professionals argue, “These statements weren’t the mere rantings of a self-centered billionaire surrounded by enablers unwilling to confront him with the authorized penalties of his personal selections. Musk bragged to Isaacson particularly how he deliberate to cheat Twitter’s executives out of their severance advantages as a way to save himself $200 million.”
The swimsuit, Agrawal et al v. Musk et al, was filed in California’s Northern District and follows information that settlement talks between X Corp. and ex-Twitter managers broke down in a associated case in Delaware, Woodfield v. Twitter Inc., the place $500 million in unpaid severance to former Twitter managers and engineers is in dispute.
Representatives for X Corp. and Elon Musk didn’t instantly reply to CNBC’s request for remark.
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