Musk beats ex-Twitter employee to $500 million severance deal

A US judge has dismissed a lawsuit brought by former Twitter employees, alleging that it was unlawfully denied nearly $500 million in back pay to workers fired after billionaire Elon Musk took over the company. was accused of

Judge Trina Thompson said the employees did not prove their claims were protected by federal law.

The decision is a win for Mr Musk, who bought Twitter in 2022 and immediately decided to make changes, including laying off thousands of staff.

The move sparked numerous lawsuits from former employees and vendors, accusing the company of withholding payments it had promised.

The complaint was filed in 2023 in a federal court in San Francisco by Courtney McMillan, the “former head of Total Rewards” on the social media site, which Mr. Musk renamed X.

In the complaint, they said the firm provided staff with only one month’s salary instead of the more generous benefits, including at least two months’ salary and health insurance contributions, that were promised.

Mr. Musk’s team asked the judge to dismiss the complaint, saying that America’s Employee Retirement Income Security Act does not apply as claimed.

This act sets the standards for private health and pension plans.

“We are disappointed by this decision and are considering our options moving forward,” said a spokesman for Miss McMillan’s team.

Other cases, including one brought by former executives of the company, are still pending in the courts.

In his ruling, Judge Thompson pointed to those disputes, stating that workers may have other opportunities to prove their claims.

“The court lacks jurisdiction. However, the plaintiffs are not without recourse. Indeed, other lawsuits have been brought against Twitter for failing to pay employees wages or provide severance benefits during the same or overlapping periods. ” He wrote.

Jenny

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