· Court filing
X reaches settlements with laid-off staff and ex-executives who said Musk denied promised severance
What he said or did
X disclosed a tentative settlement of a proposed class action by former employees claiming $500 million in unpaid severance after Musk's 2022 layoffs of about 6,000 people. In early October 2025 it also settled a $128 million suit by ex-CEO Parag Agrawal and three other executives.
Background
The executives alleged Musk falsely accused them of misconduct
to deny severance after they had sued him over his attempt to back out of the Twitter purchase.
Official response
Musk and X denied wrongdoing and said the executives were fired over their performance.
What happened next
Terms of both settlements were not disclosed. The rank-and-file case had been dismissed by a federal judge in 2024 and was on appeal at the Ninth Circuit when the deal was reached.
Sources
- Associated Press (via DT Next)22 Aug 2025 · Archived copy
- Fox Business (Reuters contributed, via KTVU)23 Aug 2025
- Reuters (via The Gazette)8 Oct 2025
This entry records what was publicly said or done, as reported by the sources above. Quotes are attributed to the person who made them.
