&imwidth=800&imheight=600&format=webp&quality=medium "Elon Musk’s X reaches tentative settlement in $500M severance lawsuit with former Twitter workers")
Elon Musk's X has reached a tentative settlement with former employees of the platform, formerly known as Twitter, who had sued the company for $500 million in unpaid severance. The agreement was revealed in a court on Wednesday, where both parties requested to postpone the hearing to September 17, 2025. On Thursday, the San Francisco federal appeals court granted the request, allowing time to conclude the settlement.
However, details of the settlement remain confidential. The lawsuit filed as a proposed class action by former Twitter employees Courtney McMillan and Ronald Cooper alleged that Twitter failed to pay legally owed severance packages to them and other terminated workers, according to a report by the Associated Press.
Meanwhile, other lawsuits are still pending, including a separate case filed by Twitter executives, including ex-CEO Parag Agrawal.
Why Elon Musk and former Twitter employees are fighting
Elon Musk fired around 6,000 Twitter employees after the acquisition in 2022. In response, those staff sued the company over their terminations and severance pay. As per the lawsuit, a 2019 severance plan ensured basic pay for two months and one week off pay for each full year of service for most Twitter employees.
The billionaire's mass layoffs at Twitter's workforce became a model of his months-long leadership of President Donald Trump’s Department of Government Efficiency, or DOGE, which eliminated tens of thousands of federal jobs earlier this year.
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An email to federal employees announcing a “deferred resignation offer”, allowing them to collect pay through September without working, was titled “Fork in the Road,” mirroring a message Musk had sent to Twitter staff in 2022.
The protracted legal dispute of Elon Musk with over 2,000 former Twitter employees also points to the courtroom battles the Trump administration now faces over its federal workforce cuts, though under other circumstances.
