On August 22, Reuters reported that Elon Musk and his social media company X (formerly Twitter) have reached a preliminary agreement to settle a $500 million severance lawsuit filed by former Twitter employees.
Musk
Lawyers for X and the former Twitter employee reported the agreement in court filings on Wednesday. The two sides asked a U.S. appeals court to postpone an upcoming hearing so they could hammer out an agreement to pay compensation to the fired workers and end the lawsuit. Specific financial terms of the agreement have not been disclosed.
Musk laid off about 6,000 employees after acquiring Twitter in 2022 and renaming it X. Several former Twitter employees have filed lawsuits over termination and severance pay, and some lawsuits are still pending in courts in Delaware and California.
The settlement would resolve a proposed class-action lawsuit filed in California by Courtney McMillian, Twitter’s former head of employee benefits programs, and operations manager Ronald Cooper.
As of press time, lawyers for Musk and McMillan have not commented.