In a dramatic turn of events, former Twitter executives are taking legal action to secure approximately $200 million in severance pay, alleging that Elon Musk has deliberately withheld their benefits following his takeover of the company in 2022.
The group of 306 ex-executives, led by former CEO Parag Agrawal, has petitioned a court to initiate the discovery process in their ongoing dispute. They claim that for seven months, they've been denied access to crucial documents that would substantiate their entitlement to the severance packages.
This legal battle unfolds against the backdrop of X's (formerly Twitter) rapidly declining value. Reports suggest that the company is now worth a staggering 80% less than when Musk acquired it. This precipitous drop has intensified the urgency of the executives' claims, as they fear Musk's "mismanagement" could jeopardize their ability to recover the owed severance.
The implications of this dispute extend beyond the executive suite. Thousands of non-executive former employees, who were terminated in the wake of Musk's takeover, are also pursuing legal action for unpaid severance and benefits. These cases have reportedly been allowed to proceed with discovery, unlike the executives' suit.
The former executives argue that Musk harbors "special ire" towards them, particularly Agrawal and others who were instrumental in pushing through the Twitter acquisition that Musk had attempted to abandon. They claim this animosity has led to a deliberate narrowing of the discovery process in their case.
In an effort to expedite the resolution before X's value potentially erodes further, the executives have requested the court to approve discovery on all claims except one that is currently under dispute. They've emphasized the inevitability of this discovery and the need to prevent further delays that could harm their claims.
As the legal drama unfolds, all eyes are on the upcoming November 15 hearing, where the court will decide whether to grant the executives' request to open discovery. The outcome of this case could have far-reaching implications, not only for the former Twitter leadership but also for the future of X under Musk's controversial stewardship.