Can Parag Agarwal’s severance claim nod bring hope to ex-twitter employees?

Severance to Twitter employees: In a recent legal ruling that could offer a glimmer of hope to hundreds of Twitter employees laid off during Elon Musk ’s takeover, a US court has granted former CEO Parag Agrawal and or top executives right to pursue ir claims that Musk dismissed m to sidestep paying severance.

decision deals a legal setback to Musk, who has sought to avoid severance payments to Twitter’s former leadership team, dismissed following his takeover in 2022. 

In a lawsuit filed earlier this year, Agrawal, along with former legal chief Vijaya Gadde, ex-CFO Ned Segal, and former general counsel Sean Edgett, argued that Musk deliberately removed m before y could formally resign, reby denying m agreed-upon compensation.

case also cited Musk’s comments to biographer Walter Isaacson, where Musk expressed urgency to finalise acquisition, suggesting it would prevent “a $200 million differential in cookie jar between closing tonight and doing it tomorrow morning.”

According to his claim in a TV interview in April 2023, Musk has fired more than 6,000 people from team of microblogging platform since he took over it. Musk also made company private to proceed with ‘radical changes’ that he wanted to make Twitter profitable again. 

In July 2024, company defeated a lawsuit that claimed nearly $500 million in sewer pay to se 6,000 employees under provisions of federal Employee Retirement Income Security Act. 

Agarwal and or executives are collectively seeking one year’s salary plus unvested stock awards at acquisition price.

Previously, same group of former executives sued Elon Musk and X.com to recover over $1 million in legal expenses. se costs were incurred while responding to shareholder lawsuits, government investigations, and a congressional hearing for which Gadde spent more than $1 million to prepare for her testimony. 

Is re hope for ex-twitter employees? 

In September, Elon Musk faced a legal setback in arbitration, losing a dispute over unpaid severance to a former Twitter employee dismissed during his 2022 takeover. 

decision, nearly two years after Musk’s $44 billion acquisition that saw mass layoffs, could be a pivotal moment for more than 2,000 former employees who have filed similar grievances. 

Friday’s court decision to allow former CEO Parag Agrawal’s severance claims against Musk advances what might be a promising precedent. Shann Liss-Riordan, who represented anymous laid-off employee who secured severance, ted that 15 cases have already gone to arbitration, with more rulings expected in coming months. 

"If furr rulings go our way," Liss-Riordan added, "we hope Twitter/X will come to table to negotiate a settlement for all affected employees," she added.