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American Focus > Blog > Economy > Elon Musk and former Twitter execs agree to settle $128 million lawsuit
Economy

Elon Musk and former Twitter execs agree to settle $128 million lawsuit

Last updated: October 10, 2025 6:51 pm
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Elon Musk and former Twitter execs agree to settle 8 million lawsuit
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More than a year after former Twitter executives took legal action against Elon Musk for approximately $128 million in unpaid severance, the two sides have reached an agreement to settle for an undisclosed sum. According to a new filing in the Northern District Court of California, the settlement is contingent upon the fulfillment of “certain conditions” in the near future, while existing deadlines in the case will be extended to allow Musk time to comply with his obligations.

The lawsuit was filed by former Twitter CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett, who initially sought millions in unpaid severance in 2024. Their case was rooted in Walter Isaacson’s description of the Twitter acquisition, which indicated that Musk completed the $44 billion acquisition prematurely and dismissed the executives to evade paying their severance and vested stock options. The executives filed suit and now seem poised to receive at least some of what they were due.

The entire lawsuit may have been avoided had Musk not attempted to withdraw from the Twitter acquisition, which was ultimately enforced through a prolonged legal dispute. The initial phase of Musk’s ownership was marked by severe cost-cutting measures, including significant layoffs and the choice to stop paying rent for several company offices.

The resolution of this lawsuit marks a conclusion to the initial Twitter narrative, leaving only the dismissal of the lawsuit as an outstanding milestone. If Musk and X fail to meet the settlement conditions, the case is set to proceed on October 31.

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