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

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A US choose 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 mentioned the workers had not confirmed that their claims had 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 courtroom in San Francisco by Courtney McMillian, the previous “head of total rewards” on the social media web site, which Mr Musk renamed X.

In the criticism, she mentioned the agency had offered workers just one month’s value of pay as severance as a substitute of the much more beneficiant advantages, together with at the very least two months of wage and contributions towards medical insurance, that had been promised.

Mr Musk’s crew had urged the choose 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.

Ms McMillian’s lawyer didn’t reply to a request for remark.

Other instances, together with one introduced by former leaders of the corporate, are nonetheless working their approach by means of 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 are not without recourse. Indeed, there are other cases brought against Twitter for the failure to pay wages or provide employee severance benefits during the same or overlapping period,” she wrote.