A recent ruling by a US judge dismissed a case brought against billionaire Elon Musk by former Twitter staff. The employees had accused Musk of unlawfully denying approximately $500 million in severance payments owed to workers who were fired after his takeover of the company.
Judge Trina Thompson stated that the employees had not provided enough evidence to show that their claims were protected by federal law. The ruling was seen as a victory for Musk, who acquired Twitter in 2022 and subsequently made significant changes, including the termination of thousands of employees.
Following the takeover, multiple lawsuits were filed by former staff and vendors alleging that the company had failed to fulfill promised payments. One such complaint was filed in 2023 by Courtney McMillian, a former executive at the social media site, which Musk rebranded as X. In the complaint, McMillian claimed that the company only provided one month’s worth of pay as severance instead of the more generous benefits that had been promised.
Musk’s legal team had argued that the Employee Retirement Income Security Act, which sets standards for private health and pension plans, did not apply to the case. Despite the ruling in Musk’s favor, other cases, including those brought by former company leaders, are still ongoing in the courts.
Judge Thompson acknowledged the ongoing disputes and suggested that the workers may have other opportunities to pursue their claims. She stated, “The Court lacks jurisdiction. However, plaintiffs are not without recourse. Indeed, there are other cases brought against Twitter for the failure to pay wages or provide employee severance benefits during the same or overlapping period.”
Overall, the ruling in Musk’s favor marked a significant development in the legal battle surrounding the changes and layoffs that followed his acquisition of Twitter.
