Elon Musk and X Corp., the company formerly known as Twitter, have reached a settlement agreement with four former senior executives who sued over $128 million in unpaid severance compensation, according to an October 1 filing in the U.S. District Court for the Northern District of California.

The settlement resolves a 2024 lawsuit brought by former Twitter CEO Parag Agrawal, CFO Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sean Edgett, who alleged that Musk wrongfully withheld severance payments following his $44 billion acquisition of Twitter in October 2022.

According to the court order, both sides have reached an undisclosed agreement contingent upon “certain conditions” to be met in the coming weeks. Deadlines and depositions previously scheduled for October... including Musk’s deposition...have been postponed to allow time for those conditions to be fulfilled. If the settlement terms are not met, the lawsuit is scheduled to resume on October 31, 2025.

The executives’ complaint alleged that Musk expedited the closing of the 2022 Twitter acquisition by one day to avoid triggering approximately $200 million in vested stock options and severance packages. The lawsuit cited passages from Walter Isaacson’s authorized biography of Elon Musk, published in 2023, which described Musk’s intent to fire the executives “for cause” immediately after taking control of the company.

Neither Musk nor representatives for X Corp. or the plaintiffs have disclosed the specific terms of the agreement. The Verge first reported the existence of the settlement filing.

The case followed several other legal disputes between Musk’s companies and former Twitter employees. In August 2025, X Corp. reached a separate settlement covering “thousands” of former workers who alleged they were dismissed without the required 60-day notice under federal labor laws.

About X Corp.

X Corp., formerly known as Twitter, is a social media and technology platform that enables public and private digital communication through text, video, and live content. The company was acquired by Elon Musk in October 2022 and later rebranded as part of a broader vision to develop a global “everything app.”

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.