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X Reaches Tentative Settlement in $500 Million Severance Case Brought by Former Twitter Workers

The appeals court paused a September hearing to allow both sides to finalize the agreement.

FILE PHOTO: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of Twitter, gestures as he attends the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition centre in Paris, France, June 16, 2023. REUTERS/Gonzalo Fuentes/File Photo/File Photo
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Overview

  • The deal would resolve the proposed class action led by former Twitter benefits chief Courtney McMillian and operations manager Ronald Cooper.
  • Plaintiffs say a 2019 severance plan promised two months of base pay plus a week per year of service, with up to six months for some senior staff.
  • After Elon Musk’s 2022 takeover and rebrand to X, roughly 6,000 employees were laid off, and many received at most one month of pay or none, according to the suit.
  • A federal judge dismissed the case in July 2024, and the plaintiffs appealed to the 9th U.S. Circuit Court of Appeals.
  • The settlement terms were not disclosed, and other lawsuits by former employees and executives in California and Delaware remain active.