Elon Musk’s X may finally settle $500M severance lawsuit

After more than two years since they parted ways with the company, a group of former Twitter employees is on the brink of receiving their severance payments. Elon Musk’s company, X, is reportedly working towards a settlement in a class action lawsuit brought by workers who were dismissed shortly after Musk acquired Twitter. This development emerged through a recent court filing, where both the plaintiffs and X requested a postponement of an upcoming hearing to finalize a settlement agreement. Following Musk's acquisition of Twitter in 2022, he implemented significant layoffs, cutting over 6,000 jobs and reducing the workforce by approximately 80%. While Musk initially promised three months of severance pay, the lawsuit contends that numerous former employees did not receive the full amounts owed, with some not receiving any payment whatsoever. The legal action also claims that Musk’s severance offer fell short of the expectations set by a severance plan that had been established at Twitter since 2019, which assured senior employees up to six months’ base salary, along with additional pay based on years of service. In a prior ruling, a U.S. District Judge in San Francisco stated that Musk was not obligated to honor the severance agreements previously made by Twitter. The plaintiffs challenged this decision and were scheduled to present their case in an appeals court next month, but have now sought to delay the hearing as discussions for a potential settlement continue.