Elon Musk agrees to settle $128 million lawsuit from former Twitter executives

Elon Musk has reached an agreement to settle a lawsuit filed by four former Twitter executives whom he fired after acquiring the company in 2022. The Verge reports.

The lawsuit involved more than $128 million in unpaid severance pay to former Twitter executives. According to an update to the case filed in the U.S. District Court for the Northern District of California, the parties — former Twitter CEO Parag Agrawal, CFO Ned Segal, general counsel Vijaya Gadde and legal counsel Sean Edgett — reached a confidential settlement with Musk and Company X.

The settlement agreement is contingent on the fulfillment of "certain conditions" that were not specified in the documents. The current deadlines in the case have been postponed to give Musk time to fulfill his obligations. If the conditions of the settlement are not met, the hearing in the case will resume on October 31 of this year.

The lawsuit against Elon Musk was filed in March 2024 after a long-running conflict in which former executives accused Musk of intentionally closing a $44 billion deal early to avoid paying $200 million that was due the day after their options vested.

The complaint by former Twitter executives cited a biography of Musk by Walter Isaacson, where he allegedly told the biographer of his intention to "haunt every Twitter executive for the rest of their lives."

Last year, Elon Musk won a lawsuit against former Twitter employees who accused him of failing to pay their debts. The lawsuit alleged that Musk and Company X owed at least $500 million in severance pay to about 6,000 former employees of the company that he fired in 2022 after buying Twitter. However, a district judge in San Francisco ruled that Elon Musk is not obligated to honor the terms of the severance agreements those employees had with Twitter.