Musk defeats ex-Twitter workers in search of $500m in severance

A US decide has dismissed a case introduced by former Twitter workers, who had accused billionaire Elon Musk of unlawfully denying roughly $500m in severance funds owed to employees fired after his takeover of the corporate.

Judge Trina Thompson stated the workers had not confirmed that their claims have been protected by federal regulation.

The ruling is a win for Mr Musk, who bought Twitter in 2022 and instantly set about making modifications, together with sacking hundreds of workers.

The strikes sparked a number of lawsuits from former workers and distributors, accusing the corporate of withholding funds that had been promised.

This criticism was filed in 2023 in a federal court docket in San Francisco by Courtney McMillian, the previous “head of whole rewards” on the social media website, which Mr Musk renamed X.

In the criticism, she stated the agency had supplied workers just one month’s value of pay as severance as an alternative of the much more beneficiant advantages, together with no less than two months of wage and contributions towards medical health insurance, that had been promised.

Mr Musk’s workforce had urged the decide to reject the criticism, saying that America’s Employee Retirement Income Security Act didn’t apply as claimed.

The act units requirements for personal well being and pension plans.

“We are dissatisfied within the ruling and contemplating our choices for transferring ahead,” a spokesperson for Ms McMillian’s workforce stated.

Other circumstances, together with one introduced by former leaders of the corporate, are nonetheless working their method by the courts.

In her ruling, Judge Thompson gestured to these disputes, noting that employees may need alternatives elsewhere to show their claims.

“The Court lacks jurisdiction. However, plaintiffs aren’t with out recourse. Indeed, there are different circumstances introduced towards Twitter for the failure to pay wages or present worker severance advantages throughout the identical or overlapping interval,” she wrote.

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