When Elon Musk bought Twitter in 2022, it became one of the biggest business stories in the world. From the day he walked into the Twitter office carrying a sink, to the mass layoffs that followed, the entire world watched every move.
Now, three years later, one of the most controversial parts of that takeover has finally been resolved. Musk has agreed to settle a 128 million dollar lawsuit with four of Twitter’s former top executives.
So what really happened, and why did this lawsuit matter so much? Let’s break it down in simple words.
How It All Started
In 2022, Elon Musk bought Twitter for about 44 billion dollars after a long and messy legal battle. At first, he tried to back out of the deal, saying Twitter had too many fake accounts. But the company’s board pushed back and forced him to complete the purchase.
Right after the deal was completed, Musk fired the company’s top leaders. Those who lost their jobs included Twitter’s former CEO Parag Agrawal, Chief Financial Officer Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sean Edgett.
At the time, Musk claimed he had reasons to fire them. However, the executives argued that they were fired without cause, meaning they should still receive their severance pay and stock awards. That disagreement later turned into a lawsuit worth around 128 million dollars.
What the Executives Claimed
The four former executives said they were each owed one year’s salary plus stock benefits, according to Twitter’s old severance plan. They also said Musk fired them early on purpose to avoid paying these benefits.
The lawsuit pointed to a part of Walter Isaacson’s biography of Musk. In that book, Musk was quoted as saying he would “hunt every single one” of Twitter’s executives “till the day they die.” The executives used that quote to show that Musk’s actions were not fair or professional.
They also claimed Musk closed the deal one day earlier than planned so that their stock options would not vest. That early closing, according to them, cost them about 200 million dollars in potential stock value.
Musk’s Side of the Story
Elon Musk did not say much publicly about the case. However, during the early days of his ownership, he often said Twitter was losing too much money and needed to cut costs fast.
After the takeover, Musk reduced Twitter’s staff by more than half and stopped paying rent for some office spaces. His goal, he said, was to make the company financially stable.
Still, critics argued that Musk’s approach was too harsh. Many employees and executives who were fired said they did not get the severance they were promised. That led to several lawsuits, including this one from the top executives.
The Settlement
After more than a year of back-and-forth in court, both sides finally reached a settlement in October 2025. A court filing confirmed that Musk and the four executives had agreed to settle the case.
The exact amount of money Musk will pay has not been made public. The filing only said that the settlement depends on “certain conditions” being met soon. The court also postponed some deadlines to give Musk time to meet those conditions.
If those conditions are not met, the lawsuit could continue at the end of October. But for now, it looks like both parties are ready to close this long-running dispute.
Not the Only Lawsuit
This is not the only time Musk has faced legal trouble after buying Twitter. Earlier in 2025, he also settled another big case involving about 6,000 former Twitter employees. Those workers said they were laid off without proper notice and were not given full severance pay. That lawsuit reportedly involved around 500 million dollars in claims.
These settlements show that Musk’s quick and aggressive approach to restructuring Twitter had major legal and financial consequences.
What This Means for X (Formerly Twitter)
Twitter is now called X, and Musk is trying to turn it into an all-in-one app for communication, payments, and entertainment. Settling this lawsuit helps him move on from old legal battles that started right after the takeover.
By resolving the case, Musk can now focus more on building X and improving its reputation. However, this chapter will always be a reminder of how messy the transition was when he first took over.
Business experts say the settlement also sends a clear message to companies. No matter how powerful a business owner is, firing top executives without following proper agreements can lead to years of legal trouble.
The Bottom Line
Elon Musk’s 128 million dollar settlement with Twitter’s former executives is more than just a legal deal. It marks the end of a major conflict that began when he bought Twitter three years ago.
While the exact terms remain private, this settlement shows that even billionaires eventually have to follow the same business rules as everyone else. For Musk, it’s another expensive reminder that quick decisions can come with heavy costs.
As X continues to evolve, the world will be watching to see if Musk has learned from this experience and whether the company can finally move forward without more legal battles.
