financetom
Business
financetom
/
Business
/
Elon Musk beats $500 million severance lawsuit by fired Twitter workers
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Elon Musk beats $500 million severance lawsuit by fired Twitter workers
Jul 10, 2024 9:39 AM

July 10 (Reuters) - Elon Musk won dismissal of a lawsuit

claiming he refused to pay at least $500 million of severance to

thousands of Twitter employees he fired in mass layoffs after

buying the social media company now known as X.

U.S. District Judge Trina Thompson in San Francisco ruled on

Tuesday that the federal Employee Retirement Income Security Act

governing benefit plans did not cover the former employees'

claims, and therefore she lacked jurisdiction.

Lawyers for the plaintiffs did not immediately respond to

requests for comment on Wednesday. Musk's lawyers did not

immediately respond to similar requests.

The case is one of many accusing Musk of reneging on

promises to former Twitter employees, including former Chief

Executive Parag Agrawal, and vendors after buying the company

for $44 billion in October 2022.

Musk also runs the electric car company Tesla, and

is the world's richest person, according to Forbes magazine.

According to the complaint, Twitter's 2019 severance plan

called for employees who stayed on after the buyout to receive

two or six months of pay, plus one week of pay for each year of

employment, if they were laid off.

The plaintiffs Courtney McMillian, who oversaw Twitter's

compensation and benefits, and Ronald Cooper, an operations

manager, said Twitter instead offered fired employees just one

month of pay as severance, with no benefits.

Thompson said ERISA didn't apply to Twitter's post-buyout

plan because there was no "ongoing administrative scheme" where

the company reviewed claims case-by-case, or offered benefits

such as continued health insurance and out placement services.

"There were only cash payments promised," she wrote.

The judge said the plaintiffs can try amending their

complaint, but only for claims not governed by ERISA.

The case is McMillian et al v. Musk et al, U.S. District

Court, Northern District of California, No. 23-03461.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Mar 22, 2024
05:04 AM EDT, 03/22/2024 (MT Newswires) -- Hutchmed ( HCM ) said late Thursday it has started the registration stage for a phase 2/3 clinical trial of investigational drug sovleplenib for adult patients with warm antibody autoimmune hemolytic anemia in China. The move follows positive data from the proof-of-concept phase 2 stage of the trial and a consultation with the...
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Mar 22, 2024
(Reuters) - Popular investor Cathie Wood's ARK Invest bought nearly 10,000 shares of Reddit ( RDDT ) in the social media platform's strong market debut on Thursday, an email from the asset manager showed. A total of 9,982 shares of the loss-making company was added to ARK Next Generation Internet ETF ( ARKW ) and ARK Fintech Innovation ETF (...
Japan's union group Rengo announces biggest wage hikes on record
Japan's union group Rengo announces biggest wage hikes on record
Mar 22, 2024
TOKYO (Reuters) -Japanese firms have agreed to raise pay by 5.25% this year, the biggest rise under comparable data since 2013, the country's largest union group Rengo confirmed on Friday. The results of the closely-watched wage negotiations are announced in several stages, in which the blue-chip firms are first to wrap up their talks in mid-March. The second announcement on...
Once a beacon of stability, Vietnam to name third president in a year
Once a beacon of stability, Vietnam to name third president in a year
Mar 22, 2024
HANOI, March 22 (Reuters) - Communist-ruled Vietnam is seeking its third president in little more than a year after the resignation of Vo Van Thuong, who was only elected last year after the sudden dismissal of his predecessor. With accumulated foreign direct investment higher than its gross domestic product, Vietnam's stability is crucial to multinationals with large operations in the...
Copyright 2023-2025 - www.financetom.com All Rights Reserved