Twitter ex-CEO Parag Agrawal, other leaders sue Elon Musk for non-payment of severance of USD 128 mn
New York (PTI): Twitter's former leadership team, including ex-CEO Parag Agrawal and Chief Legal Officer Vijaya Gadde, has sued the platform's owner Elon Musk, saying the billionaire fired them without reason and owes them severance payments worth USD 128 million.
The lawsuit against the Tesla and SpaceX chief and X Corp was filed in the US District Court, Northern District of California by Agrawal, Gadde, Twitter's former Chief Financial Officer Ned Segal and General Counsel Sean Edgett.
Musk has a "special ire" toward Agrawal, Segal, Gadde, and Edgett, who in their leadership roles at Twitter "appropriately and vigorously represented the interests of Twitter's public shareholders throughout Musk's wrongful attempt to renege on the deal. For their efforts, Musk vowed a lifetime of revenge," the 38-page lawsuit said.
Agrawal worked at Twitter from 2011 until 2022 and was the platform's Chief Executive Officer from November 29, 2021, until October 27, 2022, a role he took over from the company's founder and former CEO Jack Dorsey.
The lawsuit also notes that as Musk was closing Twitter's acquisition for USD 44 billion in 2022, the billionaire told his official biographer Walter Isaacson, that he would "hunt every single one of" Twitter's executives and directors "till the day they die."
"These statements were not the mere rantings of a self-centred billionaire surrounded by enablers unwilling to confront him with the legal consequences of his own choices. Musk bragged to Isaacson specifically how he planned to cheat Twitter's executives out of their severance benefits in order to save himself USD 200 million," he said.
The four former Twitter executives claim in the lawsuit that Musk owes them severance payments totalling about USD 128 million. "Under Musk's control, Twitter has become a scofflaw, stiffing employees, landlords, vendors, and others. Musk doesn't pay his bills, believes the rules don't apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him," the lawsuit said.
It said that Agrawal is entitled to severance benefits amounting to over USD 57 million, which is equal to his one-year salary of one million dollars plus restricted stock units, performance share units and other benefits. Gadde is entitled to severance benefits in the amount of USD 20 million, an amount equal to one year's salary of USD 600,000 plus other benefits.
The lawsuit alleges that under Twitter's severance plans if an eligible executive is terminated without cause following a change in control, they are entitled to severance benefits.
"Because Musk decided he didn't want to pay Plaintiffs' severance benefits, he simply fired them without reason, then made up fake cause and appointed employees of his various companies to uphold his decision. He claimed in his termination letters that each Plaintiff committed "gross negligence" and "willful misconduct" without citing a single fact in support of this claim," the lawsuit said.
The four executives highlighted "the Musk playbook", which is "to keep the money he owes other people and force them to sue him. Even in defeat, Musk can impose delay, hassle, and expense on others less able to afford it."
The lawsuit added that it would be "inequitable and unjust" to prevent the four plaintiffs from recovering benefits and other remedies from Musk, who is personally responsible for and will individually benefit from the acts of X Corp.
It also adds that as early as April 2022, shortly after signing the Merger Agreement, but before he owned the company, Musk wanted Agrawal to terminate Gadde. On or about April 27, 2022, Musk, Agrawal, and Dorsey joined a FaceTime call.
"Agrawal's intention for the call was to discuss Musk's vision for Twitter, and how they could align so that Agrawal could lead with an awareness of that vision over the next few months prior to the closing, while shareholder and regulatory approval was pending. Musk had no such intention. Within minutes of the start of the call, Musk directed Agrawal to terminate Gadde immediately. When Agrawal refused, Musk gave him a day to comply, telling him to text Musk confirmation of her firing."
The lawsuit alleges that Agrawal then said that he would take what Musk had asked under consideration, but as CEO, he made his own decisions. "Musk became aggressive and angrily repeated his orders. When Agrawal refused to fire Gadde, Musk told him that "we can't work together" as a result.
"Following the call, Musk texted Dorsey about his frustration over Agrawal's refusal to fire Gadde. Dorsey wrote, "At least it became clear that you can't work together [with Agrawal]. That was clarifying." Musk agreed, responding "Yeah"."
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Hamas has accepted draft agreement for Gaza ceasefire, release of hostages: Officials
Cairo, Jan 14: Hamas has accepted a draft agreement for a ceasefire in the Gaza Strip and the release of dozens of hostages, two officials involved in the talks said on Tuesday.
Mediator Qatar said Israel and the Palestinian group were at the “closest point” yet to sealing a deal that would bring them a step closer to ending the war.
The Associated Press obtained a copy of the proposed agreement, and an Egyptian official and a Hamas official confirmed its authenticity. An Israeli official said progress has been made, but the details are being finalized. The three-phase plan would need to be submitted to the Israeli Cabinet for final approval.
All three officials spoke on condition of anonymity to discuss the talks.
The United States, Egypt and Qatar have spent the past year trying to mediate an end the 15-month war and secure the release of dozens of hostages captured in Hamas' October 7, 2023, attack that triggered it. Some 100 people are still captive inside Gaza, and the military believes at least a third are dead.
Any deal is expected to pause the fighting and bring hopes for winding down the most deadly and destructive war they've ever fought, a conflict that has destabilized the Middle East and sparked worldwide protests.
It would bring relief to the hard-hit Gaza Strip, where Israel's offensive has reduced large areas to rubble and displaced around 90 per cent of Gaza's population of 2.3 million, many of them at risk of famine. Meanwhile, dozens of Israeli hostages would be reunited with loved ones.
Officials have have expressed optimism before, only for negotiations to stall. But they are now suggesting that they can conclude an agreement ahead of the January 20 inauguration of US President-elect Donald Trump, whose Mideast envoy has joined the negotiations.
Qatari Foreign Ministry spokesman Majed al-Ansari told a weekly briefing Tuesday that the negotiations were productive, without details.
“Today, we are at the closest point ever to having a deal,” he said.
Hamas said in a statement that negotiations had reached their “final stage".
In the October 7 attack, Hamas-led group killed around 1,200 people, mostly civilians, and abducted another 250. Around half those hostages were freed during a brief ceasefire in November 2023.
Israel's retaliatory offensive has killed over 46,000 Palestinians, more than half of them women and children, according to Gaza's Health Ministry, which does not say how many of the dead were combatants.
Israeli strikes across Gaza overnight and into Tuesday killed at least 18 Palestinians, including two women and four children, according to local health officials, who said one woman was pregnant and the baby died as well.
There was no immediate comment from the Israeli military. Israel says it only targets Hamas members and accuses them of hiding among civilians.
A three-phase agreement
The three-phase agreement — based on a framework laid out by US President Joe Biden and endorsed by the UN Security Council — would begin with the release of 33 hostages over a six-week period, including women, children, older adults and wounded civilians in exchange for hundreds of Palestinian women and children imprisoned by Israel.
Among the 33 would be five female Israeli soldiers, each to be released in exchange for 50 Palestinian prisoners, including 30 Hamas members who are serving life sentences.
The Israeli official said Israel assumes most of the 33 are alive.
During this 42-day phase, Israeli forces would withdraw from population centres, Palestinians could start returning to what remains of their homes in northern Gaza and there would be a surge of humanitarian aid, with some 600 trucks entering each day.
Details of the second phase still must be negotiated during the first. Those details remain difficult to resolve — and the deal does not include written guarantees that the ceasefire will continue until a deal is reached. That means Israel could resume its military campaign after the first phase ends.
The Israeli official said “detailed negotiations” on the second phase will begin during the first. He said Israel will retain some “assets” throughout negotiations, referring to a military presence, and would not leave the Gaza Strip until all hostages are home.
The three mediators have given Hamas verbal guarantees that negotiations will continue as planned and that they will press for a deal to implement the second and third phases before the end of the first, the Egyptian official said.
The deal would allow Israel throughout the first phase to remain in control of the Philadelphi corridor, the band of territory along Gaza's border with Egypt, which Hamas had initially demanded Israel withdraw from. Israel would withdraw from the Netzarim corridor, a belt across central Gaza where it had sought a mechanism for searching Palestinians for arms when they return to the territory's north.
In the second phase, Hamas would release the remaining living captives, mainly male soldiers, in exchange for more prisoners and the “complete withdrawal” of Israeli forces from Gaza, according to the draft agreement.
Hamas has said it will not free the remaining hostages without an end to the war and a complete Israeli withdrawal, while Israeli Prime Minister Benjamin Netanyahu has vowed in the past to resume fighting until Hamas' military and governing capabilities are eliminated.
Unless an alternative government for Gaza is worked out in those talks, it could leave Hamas in charge of the territory.
In a third phase, the bodies of remaining hostages would be returned in exchange for a three- to five-year reconstruction plan for Gaza under international supervision.
US Secretary of State Antony Blinken will make a last-minute case Tuesday for a plan for Gaza's postwar reconstruction and governance, according to a US official who spoke on condition of anonymity to preview the speech. The proposal outlines how Gaza would be run without Hamas in charge.
Growing pressure ahead of Trump's inauguration
Israel and Hamas have come under renewed pressure to halt the war before Trump's inauguration next week. His Middle East envoy, Steve Witkoff, recently joined US, Egyptian and Qatari mediators in the Gulf country's capital, Doha.
Trump said late Monday that a ceasefire was “very close”.
He told the American cable channel Newsmax that “I understand ... there's been a handshake and they are getting it finished — and maybe by the end of the week."
Hamas has blamed Israel for repeated setbacks in the negotiations, saying that on more than one occasion, it had accepted a proposal from mediators only to see Israel reject it or launch a new military operation. Israel and its close ally the United States have blamed setbacks on Hamas.
Dozens of protesters, including relatives of hostages, formed a human chain Tuesday outside Israel's parliament, demanding the deal be sealed.
“This is the chance, we can't let it go until they are all here with us,” said Shay Dickmann, whose cousin in Gaza has been declared dead by the military.
In the Israeli-occupied West Bank, families of Palestinian prisoners gathered as well. “I tell the mothers of the prisoners to put their trust in the almighty and that relief is near, God willing,” said the mother of one prisoner, Intisar Bayoud.
