Former Twitter executives are seeking approximately $200 million in damages as part of the lawsuit they filed against Elon Musk. Executives who were fired from their positions after acquiring Twitter in 2022 claim Musk deliberately refused to pay severance payments and did so in retaliation against executives who approved the Twitter deal.

With names like former Twitter CEO Parag Agrawal, former CFO Ned Segal and Chief Legal Officer Vijaya Gadde, this as former executives blocked the sharing of documents related to compensation rights He has filed a lawsuit against Musk.

What are the main reasons for the case?

According to the executives’ claims, Musk wrongly rejected them He made these dismissals without giving any specific reason.

The executives involved state that there are certain legal requirements for the payment of severance benefits, but that these requirements do not apply to termination. They also claim that Musk failed to pay compensation to cover legal costs incurred during the Twitter acquisition process and deliberately delayed the process.

Musk may not be able to pay compensation due to X’s current situation

Executives are also concerned that Musk will not pay these claims due to X’s current condition. The value of X has fallen by 80% compared to when Musk bought it. This puts the solvency of directors’ claims at real risk.

The administrators have asked the court to expedite the case and expand the discovery process. Otherwise, they argue that their concerns that Musk is deliberately delaying the case and trying to weaken the rights of executives by further prolonging the process will increase.

Musk’s opposition to compensation claims against former Twitter employees is not limited to executives. Thousands of former Twitter employees have also filed similar compensation claims against Musk.