Elon Musk and his social media platform, X, have reportedly reached a preliminary settlement with former Twitter employees regarding a class action lawsuit over severance payments. The former employees, led by Courtney McMillian and Ronald Cooper, sought $500 million, alleging that they were not properly compensated following mass layoffs after Musk’s acquisition of Twitter in 2022, which resulted in the termination of over 6,000 staff members.
A recent court filing indicated that both parties have agreed in principle to a settlement and requested the postponement of a hearing set for September 17 while they finalize the terms. However, the specific details of the agreement, including compensation amounts, have not been disclosed.
The lawsuit claimed that laid-off workers were entitled to at least two months of pay along with additional compensation based on their tenure, as stipulated by a severance plan established in 2019. The plaintiffs accused Musk of failing to meet this obligation, with some workers reportedly receiving no compensation.
This development contrasts with a ruling from a US district judge last year, who dismissed McMillian’s case, determining that the federal Employee Retirement Income Security Act (ERISA) did not apply to their claims. This decision led to an appeal by the plaintiffs to a higher court.
Musk’s acquisition of Twitter for $44 billion has been marked by controversies, including a separate lawsuit from former Twitter executives who claim he has not paid them $128 million in severance. The ongoing legal disputes highlight the contentious nature of Musk’s management and restructuring of the company since taking over.
Source: https://www.theguardian.com/technology/2025/aug/22/elon-musk-x-settlement-twitter-employees