Court Dismisses $500 Million Severance Lawsuit Against Elon Musk's X Corp
Judge rules former Twitter employees' claims not covered by federal benefits law, allowing for amended complaints on other grounds.
- The lawsuit sought $500 million in severance for around 6,000 laid-off employees following Musk's 2022 acquisition of Twitter, now X Corp.
- U.S. District Judge Trina Thompson found the claims were not governed by the Employee Retirement Income Security Act (ERISA).
- The court noted that X Corp's severance plan involved fixed cash payments without ongoing administrative schemes.
- Plaintiffs have three weeks to amend their complaint, potentially pursuing claims like breach of contract.
- Multiple other lawsuits related to severance and employment practices at X Corp remain ongoing.
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