Additional Coverage:
- Musk’s X reaches tentative settlement in $500 million lawsuit over firings of platform’s former workers (foxbusiness.com)
X Corp Settles Severance Pay Lawsuit with Former Twitter Employees
X Corp, formerly known as Twitter, has reached a tentative agreement to settle a class action lawsuit filed by ex-employees over severance pay. The lawsuit, brought forward by Courtney McMillian and Ronald Cooper, claimed the company failed to honor a 2019 severance plan guaranteeing two months of base pay plus additional compensation based on years of service.
The suit also alleged that senior employees, like McMillian, were entitled to six months of base pay. Instead, the suit claimed, most terminated employees received only one month of severance or nothing at all.
Roughly 6,000 employees lost their jobs following Musk’s 2022 acquisition and subsequent rebranding of the social media platform. The drastic downsizing led to numerous lawsuits over severance pay.
While the financial details of the settlement remain undisclosed, both parties have requested a postponement of a hearing scheduled for September 17th at the 9th U.S. Circuit Court of Appeals in San Francisco to finalize the agreement. The court has granted the delay.
Other lawsuits related to employee terminations, including one filed by former CEO Parag Agrawal, are still ongoing.