Particle.news

Download on the App Store

XReaches Tentative Settlement With Laid-Off Twitter Staff in $500 Million Severance Lawsuit

The agreement in principle led the 9th Circuit to postpone a Sept. 17 hearing to allow time to finalize the deal.

Elon Musk attends a news conference with President Donald Trump in the Oval Office of the White House, May 30, 2025, in Washington. The billionaire Tesla CEO reached a tentative settlement to pay $500 million to 6,000 former Twitter employees who say they were denied severance after his takeover.
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
Image
Image

Overview

  • Attorneys for both sides told the court on Wednesday they had a settlement in principle and asked for a delay, which the appeals court granted on Thursday.
  • The deal would resolve a proposed class action led by Courtney McMillian and Ronald Cooper over alleged unpaid severance owed under Twitter’s 2019 plan.
  • Financial terms and any distribution to former employees have not been disclosed in the filings.
  • Roughly 6,000 employees were terminated after Elon Musk’s 2022 takeover, and plaintiffs say many received at most one month of pay or nothing.
  • A federal judge dismissed the case in July 2024, the plaintiffs appealed, and separate lawsuits by former staff and executives, including Parag Agrawal, remain pending.