Elon Musk, X settle $500M lawsuit by fired Twitter – Business News
Elon Musk and his social media company X Corp. have reached a tentative settlement to settle a lawsuit filed by former Twitter workers who mentioned they had been owed $500 million in severance pay.
Attorneys for X Corp. and the previous Twitter workers reported the deal in a Wednesday courtroom submitting, during which either side requested a US appeals courtroom to delay an upcoming courtroom listening to in order that they may finalize a deal that may pay the fired workers and finish the litigation. The financial phrases of the deal weren’t disclosed.
Musk fired roughly 6,000 workers after his 2022 acquisition of Twitter, which he rebranded X. Several workers sued over their terminations and severance pay, and different lawsuits are nonetheless pending in courts in Delaware and California.
Elon Musk fired roughly 6,000 workers after his 2022 acquisition of Twitter, which he rebranded X. AP
The settlement would resolve a proposed class motion filed in California by Courtney McMillian, who beforehand oversaw Twitter’s worker advantages applications as its “head of total rewards,” and Ronald Cooper, who was an operations supervisor.
A federal decide in San Francisco dismissed the workers’ lawsuit in July 2024, they usually appealed to the San Francisco-based ninth US Court of Appeals. The ninth Circuit had been scheduled to listen to oral arguments on Sep. 17.
A federal decide in San Francisco dismissed the workers’ lawsuit in July 2024, they usually appealed to the San Francisco-based ninth US Court of Appeals. Getty Images
Attorneys for Musk and McMillian didn’t instantly reply to requests for touch upon Thursday.
The lawsuit argued that a 2019 severance plan assured that almost all Twitter employees would obtain two months of their base pay plus one week of pay for every full yr of service in the event that they had been laid off. Senior workers resembling McMillian had been owed six months of base pay, in accordance with the lawsuit.
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But Twitter solely gave laid-off employees at most one month of severance pay, and plenty of of them didn’t obtain something, in accordance with the lawsuit. Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company.
