"Elon Musk's X social media platform, formerly Twitter, has reportedly reached a tentative settlement in a $500 million class-action lawsuit over severance pay, the New York Times reports. The suit stems from when Musk took over Twitter in 2022; he cut more than 80% of the staff (around 6,000 employees). Many laid-off employees sued, claiming they were owed severance. Now, almost three years after the firings, X Corp has settled, though the terms have not been disclosed."
"Fox Business reports that, in the lawsuit, the laid-off employees claim a company severance plan from 2019 stated that cut workers receive two months' base salary - and a week for every year served. The lawsuit says that some workers affected by the layoffs received only one month of severance pay, while others did not receive anything, per the filing. Separate cases regarding former senior executives at the company are still ongoing. The Times calls the moves an "about-face for the billionaire.""
X, formerly Twitter, reached a tentative $500 million settlement in a class-action lawsuit over severance pay tied to 2022 mass layoffs. Musk cut more than 80% of the staff—about 6,000 employees—after taking control of the company. Plaintiffs allege a 2019 company severance plan promised two months' base salary plus one week per year of service for laid-off workers. The lawsuit claims some workers received only one month of severance or none. Oral arguments were scheduled to begin September 17 in San Francisco. Separate cases involving former senior executives remain ongoing and arbitration matters for over 2,000 former employees were also addressed.
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