Elon Musk and the social media company formerly known as Twitter have reached a settlement in a $128 million lawsuit filed last year by ex-CEO Parag Agrawal and three other former executives. The lawsuit centered on claims that the officials were denied their severance payments following Musk’s acquisition of Twitter.
The legal dispute emerged after Musk took control of Twitter, which had undergone significant leadership changes. Agrawal and the other executives argued that they were entitled to their contractual severance packages, which they maintained were owed under the company’s agreements prior to the ownership change.
Details of the settlement have not been publicly disclosed, but both parties confirmed that they have resolved the matter. The resolution ends the ongoing litigation and allows Musk to focus on his future plans for Twitter, now known as X Corp., while providing the former executives with the compensation they sought.
This settlement comes amid Musk’s broader efforts to stabilize Twitter’s operations after his takeover, which has involved restructuring and other strategic changes. The outcome of this legal case marks a resolution to a significant dispute among the company’s previous leadership.