Elon Musk and his social media platform X reached a provisional agreement with a former Twitter employee on Wednesday, concluding years of legal disputes regarding retirement benefits. The ex-staff member was pursuing $500 million in a proposed class action lawsuit against the billionaire.
A court filing issued on Wednesday indicated that the involved parties have in principle come to a settlement agreement and requested a postponement of the case while they finalize the terms. The details of the interim agreement remain undisclosed, leaving it uncertain what amount of compensation the former employee might receive.
Former Twitter employees, led by Courtney McMillian and Ronald Cooper, contended that the firm inadequately paid retirement benefits to thousands of workers following significant layoffs. After Musk took over Twitter in 2022, he eliminated over 6,000 positions as part of a workforce overhaul, notably impacting nearly all divisions, including content moderation and communications. The layoffs triggered several ongoing lawsuits from both staff and executives, highlighting Musk’s vision of “government efficiency” during the government’s recent upheaval.
The lawsuit asserts that according to the 2019 retirement plan, employees were entitled to at least two months’ salary and additional compensation based on their tenure. However, Musk allegedly failed to adhere to the contract, at times leaving employees without any compensation.
The interim settlement marks a shift from last year when a US district judge dismissed McMillian’s case, favoring Musk. In July, Judge Trina Thompson ruled that the Federal Employee Retirement Income Security Act (ERISA) did not cover the former employee’s claims, necessitating an appeal to a higher court.
After the newsletter promotion
Musk’s $44 billion acquisition of Twitter, which was later rebranded to X, continues to be a contentious business venture. Twitter executives, including former CEO Parag Agrawal, are also involved in lawsuits against Musk concerning allegations of his failure to pay $128 million in severance.
Source: www.theguardian.com
