News
Ex-Twitter Leaders File $128 Million Lawsuit Against Elon Musk
Four former Twitter executives have taken legal action against Elon Musk, seeking $128 million in severance payments that they claim were wrongfully withheld after their dismissals following Musk’s $44 billion takeover of the social media platform in 2022. The executives—Parag Agrawal, Ned Segal, Vijaya Gadde, and Sean Edgett—were let go by Musk, who later rebranded Twitter as X.
According to the executives’ contracts, they were entitled to receive severance in the event that Twitter ceased to be a public company. When Musk privatized the company in October 2022, the executives argue that they should have been compensated with one year’s salary and unvested stock awards. The lawsuit, which was filed in U.S. District Court for the Northern District of California, also names several employees of Musk’s space exploration company, SpaceX, who reportedly oversaw human resources matters at Twitter post-acquisition.
One of the executives, Parag Agrawal, had an annual salary of $1 million and was set to receive $12.5 million in stock that would vest gradually. In the event of involuntary termination, Agrawal had a golden parachute provision entitling him to a $60 million payout. Similarly, Ned Segal and Vijaya Gadde were slated to receive $46 million and $21 million, respectively, in such a scenario, according to company filings.
Musk in the past has indicated his intention to avoid paying severance to the executives by dismissing them “for cause.” In an interview with biographer Walter Isaacson, Musk expressed his desire to withhold the payments, which would save him approximately $200 million. He even went as far as to say he would relentlessly pursue the executives to prevent them from receiving their due compensation.
Legal representatives for the executives have characterized Musk’s actions as a pattern of behavior aimed at retaining funds owed to others, forcing them to resort to legal action to claim what is rightfully theirs. Notably, the executives had previously sued Musk for legal fees incurred during investigations into Twitter, leading to a Delaware court ordering Musk to pay $1.1 million to cover those expenses in October.
As of now, a spokesperson for X, Musk’s company, has declined to provide any comments on the matter. Similarly, an attorney representing Musk has yet to respond to requests for statements regarding the lawsuit.
In conclusion, the situation underscores the ongoing legal battle between the former Twitter executives and Elon Musk, highlighting the complexities and challenges involved in corporate leadership transitions and the enforcement of contractual agreements. It remains to be seen how the court will rule on the matter and whether the executives will ultimately receive the severance payments they believe they are owed.
News
Is now the right time to invest in gold as prices have cooled?
The price of gold has climbed to record highs recently and has remained strong through much of April. And, that growth continued until the precious metal traded at around $2,390 per ounce on April 19, 2024. But since, growth in the price of the precious metal has cooled, with gold’s price now hovering around $2,300 per ounce.
This lull in gold’s price may represent an investment opportunity.
In general, investing is centered around buying assets when prices are low and selling them when prices are high – generating a profit on the difference between the two. So, considering the declines in gold’s price over the past few days, now may be the time to make your investment. But is buying gold during this lull in prices really a good idea?
Compare your gold investment options among leading brokers now.
Gold prices have cooled. Should you buy in now?
With gold’s price down from recent highs, you may be wondering if now is the right time to buy in. There are several reasons the dip in gold’s price may represent an opportunity to buy. Here are some of the biggest:
Prices may rise again
If looking at a gold price chart shows anything for certain, it shows that changes in the overall growth of the medal come in fits and spurts. Periods of price growth are typically followed by periods of declines and vice versa.
But with inflation rising in recent months – and with gold’s reputation as a safe-haven asset that can hedge against inflation – it only makes sense that the price of the precious metal will eventually start to head up again in the future. While attempting to time that directional change may be tricky, buying the precious metal while the price is down gives you the opportunity to take advantage of any upward movement that may be ahead.
Add gold to your portfolio now before prices have a chance to rise.
You may be able to make a quick profit
Gold isn’t known as an asset in which you can earn a quick return, but in today’s market, that may be the case. Don’t forget that in January, gold was trading at just $2,000 per ounce. And, by mid-April, the commodity’s price had climbed to around $2,400 per ounce. That’s about 20% growth in a matter of months, much of which happened since March 1 – an impressive climb for any investment asset.
Perhaps more importantly, gold’s price growth through the beginning of 2024 shows that the commodity doesn’t have to be a buy and hold style investment that you keep in a safety deposit box or precious metal depository for years to come. There’s also the possibility that the commodity’s price could climb further ahead, making it a compelling way to potentially generate a quick profit.
There are other benefits of investing in gold
There are other benefits of investing in gold that have little to do with the price growth seen thus far in 2024 – or the lull in prices seen over the past couple of days. Those benefits include:
- Inflation protection: Gold has long been considered an inflation hedge, and for good reason. When inflation drives the prices of consumer goods and services up – and the value of the dollar down – gold’s price tends to rise. So, it could be used to maintain the value of your portfolio during inflationary economic conditions. That’s important in today’s economic environment as stubborn inflation continues to weigh on the value of the dollar.
- Portfolio diversification: Gold’s price doesn’t always move in the same pattern that bonds or stocks do. So, mixing a reasonable amount of gold into your portfolio (up to 10% of your portfolio assets) as a diversifier could protect you from losses should one or more of your traditional portfolio assets fall in value. “If you have less than 5% – 10% of your net worth in commodities & FX (forex), you should absolutely consider adding exposure to gold and other precious metals,” says Vijay Marolia, money manager and managing partner at the wealth management firm, Regal Point Capital.
The bottom line
Gold’s price has fallen from recent highs – which may represent an opportunity to tap into growth ahead. However, gold isn’t simply a “buy while it’s low and sell while it’s a high” kind of investment opportunity. The commodity can also protect your portfolio from the stubborn inflation we’ve seen thus far in 2024 while acting as a diversification tool that could increase your risk-adjusted portfolio returns. So, consider adding gold to your portfolio today while it has the potential to grow in value.
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Is now the right time to invest in gold as prices have cooled?