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Musk defeats ex-Twitter staff seeking $500m in severance

Elon Musk 37 Elon Musk bought Twitter, now called X, in 2022

Thu, 11 Jul 2024 Source: BBC

A US judge has dismissed a case by former Twitter employees accusing Elon Musk of unlawfully denying $500 million in severance payments after his 2022 takeover.

Judge Trina Thompson ruled that the employees failed to prove their claims were protected by federal law.

The complaint, filed by ex-"head of total rewards" Courtney McMillian, alleged staff received only one month’s pay instead of the promised severance benefits.

Musk’s team argued the claims did not fall under the Employee Retirement Income Security Act. Despite this ruling, other related lawsuits are still pending, and Judge Thompson noted workers might have recourse in those cases.

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Source: BBC