Elon Musk’s social media company X (formerly Twitter) may soon resolve a long-running legal battle with former employees over unpaid severance.
The case, which sought up to $500 million in benefits, has reached a tentative settlement, according to recent court filings.
The lawsuit was filed after Musk’s 2022 takeover of Twitter, when thousands of staff were laid off. Ex-employees argued that X failed to honor a 2019 severance plan that promised two months’ base pay plus additional weeks depending on years of service. Senior staff were reportedly entitled to as much as six months’ pay.
Both parties have asked the court to postpone a scheduled hearing on September 17, 2025, while they finalize the agreement. The details of the settlement have not been disclosed.
This marks a significant step forward in resolving one of the largest disputes from Musk’s turbulent Twitter acquisition. However, other lawsuits remain active, including claims from former executives like ex-CEO Parag Agrawal, who is seeking more than $128 million in severance.
If finalized, the deal could bring long-awaited closure for thousands of former employees, while allowing Musk’s X to move past one of its most high-profile legal battles.
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