According to the New York Times, Elon Musk’s X social media platform, previously known as Twitter, has apparently reached a preliminary agreement to settle a $500 million class-action lawsuit concerning severance payments.
This legal action originated when Musk assumed control of Twitter in 2022 and reduced the workforce by more than 80%, impacting approximately 6,000 employees. Many of those who were let go claimed they were entitled to severance benefits, leading to legal action. Nearly three years after these terminations, X Corp has agreed to settle, but specific details of the settlement remain undisclosed.
Oral arguments in the case were scheduled to begin on September 17 in San Francisco.
Fox Business highlights that the plaintiffs in the lawsuit claim a severance policy from 2019 promised affected employees two months of base salary, plus an additional week for each year of service. However, the lawsuit indicates some laid-off workers only received one month of severance pay, while others received nothing, according to the court documents.
Separate cases regarding former senior executives at the company are still ongoing.
Additionally, arbitration cases involving severance claims from more than 2,000 former Twitter employees have also reached resolution. The Times describes these settlements as a significant reversal by the billionaire.
Musk is the richest person in the world, with $379 billion at press time, per the Bloomberg Billionaires Index.
According to the New York Times, Elon Musk’s X social media platform, previously known as Twitter, has apparently reached a preliminary agreement to settle a $500 million class-action lawsuit concerning severance payments.
This legal action originated when Musk assumed control of Twitter in 2022 and reduced the workforce by more than 80%, impacting approximately 6,000 employees. Many of those who were let go claimed they were entitled to severance benefits, leading to legal action. Nearly three years after these terminations, X Corp has agreed to settle, but specific details of the settlement remain undisclosed.
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