Elon Musk has agreed to settle a lawsuit with four top Twitter executives he fired shortly after taking over the company in 2022.
The case involved a dispute over more than $128 million in unpaid severance, which the executives claimed they were owed following Musk’s $44 billion acquisition of the social media platform.
According to court filings in the US Northern District of California, the parties, former CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett, have reached an undisclosed settlement with Musk and X (the rebranded Twitter). The agreement depends on certain conditions being met, though the details have not been made public. The court has postponed existing deadlines to give Musk additional time to fulfill the settlement obligations.
The lawsuit, filed in March 2024, accused Musk of deliberately closing the acquisition a day earlier than planned to avoid paying nearly $200 million in stock options that were set to vest the following day. The complaint even referenced a quote from Walter Isaacson’s biography of Musk, where the billionaire reportedly boasted that closing early would create a “two-hundred-million differential in the cookie jar.” Musk also allegedly told Isaacson he would “hunt every single one” of Twitter’s executives and directors “till the day they die.”
If the settlement conditions are not met, the lawsuit is scheduled to resume on October 31st. This isn’t the first time X has faced legal trouble under Musk’s leadership. In August 2025, the company also settled thousands of cases from former employees who sued after being laid off without the required 60 days of advance notice, as mandated under US labor laws.
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