NAIROBI, Kenya- From the moment Elon Musk took over the reins of Twitter, now known as X, the social media giant has been entangled in a series of legal battles.
One of the most prominent disputes involves more than 6,000 employees who were laid off post-acquisition and allegedly denied their full severance packages.
In a recent turn of events, Musk has notched a significant victory against these former employees.
The class-action lawsuit, spearheaded by ex-Twitter employee Courtney McMillian, argued that the employees were owed three months of severance pay under the federal Employee Retirement Income Security Act (ERISA).
The complaint demanded $500 million in unpaid severance, claiming the laid-off workers received significantly less than what was due.
However, US District Judge Trina Thompson of the Northern District of California dismissed the case, providing Musk with a crucial win.
Judge Thompson ruled that the Twitter Severance Plan did not fall under ERISA guidelines. The decision hinged on the fact that employees were notified of a different severance payout scheme prior to the layoffs.
The ruling emphasized that the severance plan adopted post-Musk takeover superseded the 2019 plan the plaintiffs referenced. This critical distinction led to the dismissal of the class-action complaint.
While this ruling marks a setback for the dismissed employees, the legal saga is far from over. Judge Thompson’s order noted that the plaintiffs could amend their complaint to pursue non-ERISA claims.
Should they choose this route, the case might be related to other ongoing lawsuits against X Corp (formerly Twitter), including one seeking $128 million in unpaid severance for former executives and another aiming to recover about $1 million in unpaid legal fees.
This recent legal victory underscores the complexity and ongoing nature of the disputes surrounding Musk’s acquisition of Twitter.
Former employees and their legal teams are likely to continue their fight for what they believe they are owed, keeping the spotlight on Musk’s controversial tenure at the helm of the social media platform.
