Elon Musk’s social media company X (formerly Twitter) has reached a tentative settlement in a $500 million class-action lawsuit filed by thousands of former employees who claimed they were denied severance pay after mass layoffs in 2022.
The lawsuit, led by former Twitter staff members Courtney McMillian and Ronald Cooper, represented roughly 6,000 ex-workers. They argued that under Twitter’s 2019 severance plan, laid-off employees were entitled to at least two months of base pay plus additional compensation based on tenure. Instead, many alleged they received little to nothing when Musk took over the platform.
According to recent court filings, both parties have agreed to a preliminary settlement and asked for a delay in the September 17 appeals hearing to finalize the deal. While the exact terms remain confidential, the agreement marks a major shift in the high-profile dispute, which was previously dismissed under ERISA (Employee Retirement Income Security Act).
This settlement does not resolve all of Musk’s legal challenges. A separate lawsuit filed by former top executives—including ex-CEO Parag Agrawal—seeks around $128 million in unpaid severance. Legal battles over unpaid contracts and compensation continue to add pressure on Musk and X as the company navigates ongoing financial and regulatory challenges.
If this article helped you, please consider supporting our work. Every small contribution keeps Abijita.com independent and running.
