Tesla shares plunge on sales while former Twitter execs sue Elon Musk
Make us a preferred source
Make us a preferred source on Google
The news: Four former Twitter executives have sued Elon Musk over USD128 million ($197 million) in unpaid severance, the Wall Street Journal reported.
The numbers: Twitter’s former chief executive Parag Agrawal is seeking nearly USD57.4 million in severance benefits, while the company's former chief financial officer Ned Segal is requesting around USD44.5 million.
Its former chief legal officer Vijaya Gadde is seeking USD20 million and its former general counsel Sean Edgett is seeking USD6.8 million.
The amounts are based on one year’s salary, stock awards valued at the acquisition price of USD54.20 per share and health insurance premiums.
Musk faced further troubles on Monday as Tesla shares plunged 7.2%, following news that vehicle shipments from the manufacturer's China factory declined in February. Shipments fell 16% month on month to their lowest level since December 2022.
The context: The executives, who led the company during Elon Musk's takeover over Twitter (now X Corp), said he fired them citing gross negligence and wilful misconduct, which they deny. Musk said at the time they were fired for cause and he did not have to pay severance.
The executives claim Musk tried to avoid paying additional expenses after his failed attempt to abandon his acquisition of Twitter in 2022.
The lawsuit escalates a more than yearlong dispute between the former executives and the billionaire.
What they said: “This is the Musk playbook: to keep the money he owes other people, and force them to sue him,” the group said. “Even in defeat, Musk can impose delay, hassle, and expense on others less able to afford it.”
The source: Wall Street Journal
