Why is ex-Twitter CEO Parag Agrawal suing Elon Musk? - Hindustan Times

Why is ex-Twitter CEO Parag Agrawal suing Elon Musk?

Mar 05, 2024 08:26 AM IST

Parag Agrawal-Elon Musk: After Elon Musk took over Twitter, he fired several top-ranking executives including Parag Agrawal.

Parag Agrawal sues Elon Musk: Former Twitter CEO Parag Agrawal and three other ex-executives have suited company boss Elon Musk for $128 million in unpaid severance payments alleging that the billionaire showed "special ire" towards them by publicly vowing to withhold their severance payments of around $200 million. This happened after Elon Musk took over the social media platform in a $44 billion deal in 2022 after which they were ousted from the company, as per the lawsuit filed.

Parag Agrawal- Elon Musk: Former Twitter CEO Parag Agrawal has filed a case against Elon Musk.
Parag Agrawal- Elon Musk: Former Twitter CEO Parag Agrawal has filed a case against Elon Musk.

Read more: Tata Motors demerger: How does it affect shareholders?

What Parag Agrawal's lawsuit alleges?

Lawyers for Parag Agrawal and the other ex-executives noted, “Under Musk’s control, Twitter has become a scofflaw, stiffing employees, landlords, vendors, and others. Musk doesn’t pay his bills, believes the rules don’t apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him."

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

Read more: IBM's message to employees: ‘Raise your hand’ and volunteer for layoffs

Why did Parag Agrawal leave Twitter?

After Elon Musk took over Twitter, which has since been renamed X, he fired several other top-ranking executives including Parag Agrawal. Company's top legal and policy official Vijaya Gadde, chief financial officer Ned Segal and Twitter’s general counsel Sean Edgett were unsurprisingly dismissed at the time.

Read more: Ex-Google employee's ordeal after working for 10 years at tech giant: ‘Cried my eyes out when…'

All these executives were key players for Twitter in the company’s lawsuit in 2022 as they forced Elon Musk to fulfill the purchase of the platform after he tried to back out.

Read more: Minister warns Google amid Gemini AI row: 'Can't simply say sorry or apologise'

Did Elon Musk pay Parag Agrawal after Twitter's purchase?

Following this, the executives were to receive substantial payouts as part of Elon Musk’s agreement to buy the company. Parag Agrawal was set to reportedly get roughly $50 million in severance payouts.

Twitter's other lawsuits regarding severance

Twitter has been accused of labor and workplace violations, including failing to pay severance to thousands of workers laid off in 2022 and 2023.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
Share this article

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

Story Saved
Live Score
Saved Articles
My Reads
Sign out
New Delhi 0C
Thursday, April 18, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On