Elon Musk faces another legal battle

Elon Musk faces another legal battle

Elon Musk

Tesla Inc. and SpaceX CEO Elon Musk is embroiled in yet another legal dispute. This time a former Twitter (now rebranded as X) executive has alleged that Musk’s actions cost him and other top executives $200 million in severance.

What Happened: The lawsuit was filed by Robert Kaiden, Twitter’s former chief accounting officer, in the Northern District Court of California.



Kaiden claims that Musk, who acquired Twitter in October 2022, falsely accused him and other executives of misconduct to avoid paying millions in severance, reported Business Insider.

He also alleged that Musk “cheated” him and other executives out of a combined $200 million in severance benefits. The lawsuit also claims that the committee overseeing Kaiden’s severance claim was a “sham” staffed by employees from the tech billionaire’s other companies.

According to the lawsuit, Kaiden received a letter on Nov. 2, 2022, notifying him of his immediate termination for “gross negligence or willful misconduct in the performance of [his] duties.”

Additionally, the suit claims that Kaiden did not receive his final paycheck from the company. He is now seeking approximately $3.75 million in severance, plus interest, the report noted.

Why It Matters: Kaiden served as Twitter’s chief accounting officer since 2015. He also played a crucial role in facilitating Musk’s smooth takeover of the social media giant, according to the lawsuit.



The former chief accounting officer also managed a payroll audit to verify that Twitter’s employees were “real humans,” addressing Musk’s concern that “ghost employees” might otherwise receive scheduled bonuses.

This lawsuit is the latest in a series of legal battles Musk has faced since acquiring Twitter. Earlier this year, former Twitter CEO Parag Agrawal and three other former senior executives also sued Musk, collectively asking for $128 million in unpaid severance.

In January, Musk’s another company SpaceX filed a lawsuit against the U.S. labor board, challenging allegations of unlawful dismissals. The board had accused SpaceX of violating federal labor law by sacking eight employees in 2022 who had accused the tech mogul of making sexist comments.

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