A US judge has dismissed a lawsuit filed by former Twitter employees against Elon Musk, alleging that he unlawfully denied them approximately $500 million in severance payments after his takeover of the company. The judge ruled that the employees failed to demonstrate that their claims were protected by federal law, handing a victory to Mr. Musk, who acquired Twitter in 2022 and subsequently made significant changes, including terminating thousands of employees. This decision follows multiple lawsuits from former staff and vendors accusing the company of withholding promised payments.
The lawsuit was filed in 2023 by Courtney McMillian, a former executive at Twitter, now renamed X under Musk’s ownership. She claimed that the company only provided one month’s worth of pay as severance instead of the more generous benefits promised, such as at least two months of salary and contributions towards health insurance. Musk’s legal team argued against the claims, stating that the Employee Retirement Income Security Act did not apply in this situation, as alleged by the employees. While the ruling is disappointing for the plaintiffs, other cases involving employee compensation disputes against Twitter are still ongoing in the courts, providing potential opportunities for employees to pursue their claims.
In her ruling, Judge Thompson highlighted the existence of other cases against Twitter involving similar issues of unpaid wages and lack of severance benefits during the same period. While expressing a lack of jurisdiction in this particular case, she suggested that employees might find recourse in other legal avenues to address their grievances. The dismissal of this lawsuit underscores the complex legal battles surrounding employee compensation in the aftermath of high-profile corporate takeovers and reorganizations.
