Elon Musk, X Corp to resolve $ 500 million lawsuit over Twitter Firings

New York: Elon Musk and its social media business X Corp has reached a preliminary agreement to finalize a lawsuit filed by former Twitter employees who said they owe $ 500 million to severance wage. Attorneys from X Corp and former Twitter employees reported the agreement in a Wednesday court conservation, in which both parties asked an US Appeal Court to delay an upcoming court hearing so that they could finalize an agreement that would pay the fired employees and end the litigation. The financial conditions of the agreement were not disclosed. Musk fired about 6,000 employees after his acquisition of Twitter in 2022, which he reconsidered X. Several employees have sued their terminations and severance payment, and other lawsuits are still pending in the courts in Delaware and California. The settlement would solve a proposed class action filed in California by Courtney McMillian, who previously supervised Twitter’s employee benefits as his ‘head of total rewards’, and Ronald Cooper, who was an operations manager. A federal judge in San Francisco rejected the employees’ lawsuit in July 2024, and they called on the 9th US Appeal Court in San Francisco. The 9th circle was scheduled to hear oral arguments on September 17. Attorneys for Musk and McMillian did not immediately respond to requests for comment on Thursday. The lawsuit argued that a 2019 severance plan guaranteed that most Twitter workers would receive two months of their base payment plus one week’s payment for each full service year if they were discharged. Senior employees such as McMillian are owed six months of base payment, according to the lawsuit. But Twitter only gave a month of severance payment only a fired workers, and according to the lawsuit, many of them received nothing. Twitter dismissed more than half of his workforce as a cost -saving measure after Musk purchased the company.