Elon Musk, X facing $128M severance lawsuit from former Twitter executives

Four former Twitter executives, including CEO Parag Agrawal, have filed a lawsuit against Elon Musk and X Corp. (X) — alleging that they’re owed more than US$128 million in severance payments.

According to the suit, filed in California’s Northern District, the executives claim that Musk has a “special ire” towards them because they prevented him from backing out of his multibillion-dollar acquisition of the social media platform.

They were told in their termination letters that they committed “gross negligence” and “willful misconduct”, but no evidence was provided to support the allegations.

“This is the Musk playbook: to keep the money he owes other people, and force them to sue him,” the lawsuit reads.

“Even in defeat, Musk can impose delay, hassle, and expense on others less able to afford it.”

Musk and X are already facing several lawsuits from former Twitter employees who claim that they weren’t provided proper severance.

SEE ALSO
• Musk, X facing $500M class action over severance payments
• X, formally Twitter, accused of age discrimination during November layoffs
• Elon Musk to Twitter staff: Be ‘extremely hardcore’ or quit

Another lawsuit amid major tech layoffs

The latest legal battle involving Musk and X comes amid a flurry of tech sector layoffs in 2024.

Big names, including Sony, Cisco, Mozilla, Instacart, Grammarly, Amazon, DocuSign, Snap, Zoom, Okta, PayPal, Salesforce, eBay, Wayfair, and YouTube, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Lighthouse Labs engages in company-wide layoffs: Reports
• Boundless Learning laying off 15% across company: Reports
• Where are layoffs happening in Canada?

Severance pay in Canada

In Canada, non-unionized employees can get up to 24 months of severance pay when they are fired or laid off from their job without cause.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because non-unionized workers often don’t meet the conditions necessary for this type of dismissal.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.

This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.

To figure out how much severance you could be owed, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer doesn’t provide you with the correct amount, you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP immediately.

We regularly resolve wrongful dismissal claims and can help you secure the compensation you deserve.

LEARN MORE
• Severance pay for provincially regulated workers
• Rights to severance for tech sector staff
• Severance packages during mass layoffs

Severance pay for executives

Severance packages for C-suite employees can be complex due to the numerous factors that must be considered for compensation.

For Canadian executives, these factors can include:

• Salary
• Bonuses or incentive payments
• Stock options
• Profit-sharing
• Employee discounts
• Benefits
• Pension contributions
• Outplacement counselling
• Legal fees

Similar to other non-unionized employees, the scope of a C-suite employee’s severance package can be limited by the terms agreed upon in their employment agreement or offer.

Therefore, it’s advisable for all employees to have their contracts reviewed by a member of our team before signing.

This step ensures they fully understand the implications for their future entitlements in the event that they are terminated or lose their job.

SEE ALSO
• Should I negotiate my own severance package in Ontario?
• What Albertans need to know about negotiating severance packages
• Negotiating severance in B.C.: What employees need to know

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.