Elon Musk, X Corp to settle $500-million lawsuit over Twitter firings

New York: Elon Musk and the social media company X Corp reached a temporary agreement to solve a case filed by former Twitter employees who said they owed a $ 500 million severance pay.

For X Corp and former Twitter employees, lawyers reported the agreement in the Wednesday Court file, which both sides wanted to postpone a US appeal court to an upcoming court hearing in order to conclude an agreement that would pay to the fired employees and end the lawsuits. The financial conditions of the agreement were not announced.

After the acquisition of 2022 Twitter, Musk fired about 6,000 employees and re -branded X. A few employees filed a lawsuit against termination and severance pay, and other cases are still waiting in the courts in Delaware and California.

The settlement would solve a proposed class action and Ronald Cooper, a proposed class action and operation manager Ronald Cooper, which was previously opened by Courtney McMillian, who had previously controlled Twitter’s benefit programs as “Head of Total Awards”.

In July 2024, a Federal Judge in San Francisco rejected the case of employees and applied to the 9th US Appeal Court based in San Francisco. The 9th Circuit was planned to hear oral arguments on September 17th.

Musk and McMillian lawyers did not immediately respond to their requests for comments on Thursday.

The case argued that the 2019 severance pay plan will guarantee that most Twitter workers will receive one week fee for each year of service if they are dismissed for two months of the base wages of twitter workers. According to the case, he owed a six -month base salary to senior employees such as Mcmillian.

However, Twitter paid only one month of severance pay and many of them did not receive anything. Twitter dismissed more than half of the labor force as a cost -lowering measure after the Musk company purchased.