In a recent legal battle between former Twitter staff and billionaire Elon Musk, a US judge has dismissed a case accusing Musk of unlawfully denying roughly $500 million in severance payments owed to workers fired after his takeover of the company.
Judge Trina Thompson ruled that the employees had not proven that their claims were protected by federal law, handing a victory to Musk who purchased Twitter in 2022 and made significant changes, including laying off thousands of staff.
The lawsuit was filed in 2023 by Courtney McMillian, the former “head of total rewards” at Twitter, now renamed X by Musk. McMillian alleged that the company had only provided one month’s worth of pay as severance instead of the more generous benefits promised, such as two months of salary and contributions toward health insurance.
Musk’s team argued that the Employee Retirement Income Security Act did not apply as claimed, setting standards for private health and pension plans.
“We are disappointed in the ruling and considering our options for moving forward,” a spokesperson for McMillian’s team said.
While this case has been dismissed, other lawsuits from former staff and vendors are still ongoing. Judge Thompson noted that workers may have other opportunities to prove their claims in separate cases against Twitter for similar issues.
As the legal battles continue, the fallout from Musk’s takeover of Twitter and the subsequent layoffs remains a contentious issue for all parties involved.
