Elon Musk's social media firm X reached a tentative settlement with former employees who had sued for $500m in severance pay. The parties jointly requested the US appeals court in San Francisco to postpone a scheduled hearing while they finalize settlement paperwork. About 6,000 workers were sacked after Musk's 2022 takeover, and the lawsuit alleges wrongful denial of benefits under the company's severance plan. Plaintiffs said the plan promised payments as high as six months' salaries, while Twitter provided at most one month of severance and some employees received nothing. Settlement details remain private pending court approval.
"The parties have reached a settlement agreement in principle and began negotiating the terms of a long form settlement agreement," according to court documents filed by both sides, seen by the BBC. Details of the agreement are not yet public and will require the courts' approval. The lawsuit, led by former Twitter employee Courtney McMillian, says about 6,000 people were wrongly denied benefits under the company's severance plan.
They argued that the firm had failed to provide payments as high as six months' worth of salaries, among other terms. But Twitter only gave sacked workers at most one month of severance pay, while some did not receive anything, according to the lawsuit. Musk axed thousands of Twitter staff globally, downsizing the platform's trust and safety, human rights and media teams.
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