Former Twitter workers $500 million lawsuit dismissed

Elon Musk wins a legal victory in the face of a lawsuit filed by former employees of Twitter, now renamed X. A federal court in San Francisco has dismissed the suit by former Twitter employees seeking $500 million in compensation.

Elon Musk beats $500 million severance lawsuit by fired Twitter workers https://t.co/2PNhv6SJjY pic.twitter.com/0UYLwBAt7T

— Reuters (@Reuters) July 10, 2024

Elon Musk was accused of failing to pay $500 million to more than 6,000 laid-off employees following his acquisition of Twitter, a transaction valued at $44 billion and finalized on October 27, 2022.

The judge in charge of the case determined that the fired employees were not entitled to severance pay under the federal Employee Retirement Insurance Security Act.

Among his first measures after acquiring Twitter in 2022, Musk had made a significant reduction in the company’s workforce. In response, laid-off employees filed several lawsuits seeking financial compensation.

Elon Musk announced at the time that all employees leaving the company would receive severance pay equivalent to three months’ salary.

However, the plaintiffs alleged that some employees had received only one month’s salary or no severance pay at all.