In a recent legal battle, a US judge has dismissed a case brought by former Twitter staff against billionaire Elon Musk, who they accused of unlawfully denying roughly $500 million in severance payments owed to workers fired after his takeover of the company.
Judge Trina Thompson ruled that the employees had not proven that their claims were protected by federal law, handing a victory to Mr. Musk, who purchased Twitter in 2022 and initiated significant changes, including laying off thousands of employees.
The lawsuit, filed in 2023 by Courtney McMillian, the former “head of total rewards” at the social media site (which Mr. Musk renamed X), alleged that the company had only provided one month’s worth of pay as severance instead of the more generous benefits promised, such as at least two months of salary and contributions toward health insurance.
Mr. Musk’s legal team argued that the Employee Retirement Income Security Act did not apply as claimed, setting standards for private health and pension plans.
“We are disappointed in the ruling and considering our options for moving forward,” a spokesperson for Ms. McMillian’s team stated.
While this case has been dismissed, other lawsuits, including one brought by former leaders of the company, are still ongoing. Judge Thompson acknowledged these disputes in her ruling, suggesting that the workers may have other opportunities to prove their claims in different cases against Twitter.
As the legal battles continue, the fallout from Mr. Musk’s takeover of Twitter and the subsequent layoffs remains a contentious issue for all parties involved.
