Elon Musk's X, ex-Twitter CEO Parag Agrawal settle $128 million lawsuit: Report

Elon Musk's firm X, formerly called Twitter, has reportedly agreed to settle a $128 million lawsuit filed by former CEO Parag Agrawal, who was sacked after the SpaceX founder took over the company.

Agrawal and three top officials had filed the suit alleging that they weren't paid severance money after their separation from the social media platform. After taking over, Musk overhauled the workforce and renamed Twitter to 'X'.

The deal was disclosed in a September 30 federal court filing. However, the terms of the settlement weren't disclosed. A lawyer said in the filing that some conditions need to be met in the near term for the settlement to be fulfilled.

Elon Musk and his 6000 laid-off employees agreed in August to settle a $500 million suit. The employees had made similar claims that they were not paid severance after Musk took over the social media platform.

Musk acquired Twitter in 2022. This was after he tried to renege on his $44 billion takeover offer. A court later ruled against him.

After taking over X, Elon Musk sacked Agrawal. Later, several of the top officials, including Agrawal, sued X for not paying proper severance.

Parag Agrawal's new venture

Agrawal launched Parallel Web Systems Inc. in 2023, a cloud platform built to help artificial intelligence systems conduct large-scale online research.

The company, according to reports, has secured $30 million.

"Some of the fastest-growing AI companies use Parallel to bring web intelligence directly into their platform and agents. A public company automates traditionally human workflows, exceeding human-level accuracy with Parallel. Coding agents rely on our search to find docs and debug issues," he had written on X.