The resolution of the dispute, which was settled in arbitration, comes nearly two years after Musk acquired Twitter for $44 billion. Immediately after acquiring Twitter (now X), Musk immediately laid off more than half of his staff.
2000 complaints from former employees
Mass layoffs spark more than 2,000 complaints from former employeeswho claimed they were underpaid. A victory in Friday’s case could be precedent for thousands of former employees who have filed similar arbitration complaints.
“The arbitrator granted our client a full severance package,” attorney Shannon Liss-Riordan said in a memo Monday that was obtained by two former Twitter employees who declined to be identified, revealing confidential information. “We are thrilled this development and we hope that it heralds more good news”.
The class action lawsuit was dismissed
In July, Musk and X Corp. — the name the billionaire chose to rebrand Twitter — successfully defended themselves against a class action lawsuit by former Twitter employees. A U.S. District Court in San Francisco dismissed the class action lawsuit seeking compensation under the federal Employee Retirement Income Security Act. at least $500 million in severance pay for about 6,000 people.
According to Bloomberg, Liss-Riordan said in the memo that 15 cases had arbitration hearings and expects further rulings to be issued in the next few months.
“We hope that if further rulings are made, Twitter/X will be willing to come to the table and negotiate a settlement for all.” — wrote Liss-Riordan.
