X and a group of former employees tentatively settled a class-action suit seeking $500 million in severance. The parties filed a court notice requesting postponement of a Sept. 17 hearing while they finalize the agreement, and a federal appeals court granted the delay. Settlement terms were not disclosed. Plaintiffs Courtney McMillan and Ronald Cooper alleged unpaid severance for fired workers. Musk's 2022 takeover led to thousands of layoffs and elimination of trust and safety, human rights, and accessibility teams. Additional lawsuits, including one by former executives such as Parag Agrawal, remain pending. Musk's layoff tactics later influenced federal workforce reduction actions.
Elon Musk's X has reached a tentative settlement with former employees of the company then known as Twitter who'd sued for $500 million in severance pay. The parties disclosed the deal in a Wednesday court filing asking for a scheduled Sept. 17 hearing in the case to be postponed. The San Francisco federal appeals court on Thursday agreed to postpone the hearing so that both sides could finalize the settlement agreement.
The terms of the settlement were not disclosed. The proposed class action lawsuit by former Twitter employees Courtney McMillan and Ronald Cooper, who said the company failed to pay them and other fired workers severance they were owed. Musk took over the social media platform in 2022 and let thousands of employees go, eliminating entire teams dedicated to trust and safety, human rights and making the site accessible to people with disabilities. Other lawsuits, including one filed by Twitter executives including former CEO Parag Agrawal, are still pending.
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