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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.

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.