Elon Musk, X Agree to USD500M Settlement with Ex-Twitter Staff
(MENAFN) Billionaire Elon Musk and X, the social media platform previously known as Twitter, have agreed to a preliminary $500 million settlement with former employees over severance disputes. The tentative deal comes as part of a lawsuit that claimed up to 6,000 workers were wrongly denied benefits after the platform's acquisition by Musk.
A court filing on Wednesday revealed that both sides had reached an agreement "in principle" and were in the process of negotiating the terms of a formal settlement, according to a report by media.
The lawsuit, spearheaded by former employee Courtney McMillian, accuses the company of violating its severance plan, which allegedly promised benefits as high as six months' worth of salaries to eligible workers. Plaintiffs argued that this promise was not fulfilled, leaving many without proper compensation after they were laid off following Musk's purchase of Twitter in 2022.
"The parties have reached a settlement agreement in principle and began negotiating the terms of a long-form settlement agreement," court documents state.
Though the specifics of the agreement remain undisclosed, it will require final approval from the court before it can be enacted.
Approximately 6,000 employees were laid off after Musk took control of the platform, prompting legal action over their severance packages. In 2023, the company rebranded as X, which has since shifted its approach to content moderation, welcoming controversial right-wing figures, resulting in a significant loss of users.
The case highlights ongoing tensions between the platform's new direction and the people who helped build it.
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