Elon Musk and his social media company, X (formerly Twitter), have reached a settlement with four top former executives over a $128 million severance dispute, ending a high-profile legal battle that began in 2024.

The executives former CEO Parag Agrawal, CFO Ned Segal, Chief Legal Officer Vijaya Gadde, and General Counsel Sean Edgett had accused Musk of unlawfully withholding their severance packages as an act of “revenge” following his $44 billion acquisition of Twitter in 2022, which he initially tried to back out of.

The quartet was terminated within hours of Musk taking control of the company in October 2022 a move they alleged was strategically timed to prevent their stock options and severance payments, totaling more than $128 million, from vesting the next day.

Their lawsuit cited details from Walter Isaacson’s 2023 biography of Musk, which claimed that Musk deliberately rushed the acquisition’s closing so he could fire the executives “for cause” a legal classification that typically invalidates severance rights. The executives argued that the alleged cause for termination was never substantiated.

A court order filed on October 1, 2025, in the U.S. District Court for the Northern District of California, confirmed that both sides had reached a confidential settlement. The agreement halts all pending depositions, including one scheduled for Musk, while the parties finalize the settlement’s terms.

This marks the second major severance case X has resolved this year. In August 2025, the company settled with another group of ex-employees who claimed they were collectively owed hundreds of millions of dollars in unpaid severance.

The latest settlement may signal Musk’s effort to resolve lingering legal disputes from his turbulent Twitter takeover and refocus attention on X’s ongoing transformation into what he calls the “everything app.”