In a tremendous legal victory for Tesla CEO Elon Musk, a San Francisco-based US court on Wednesday (Jul&nbsp;10) dismissed a lawsuit alleging that the billionaire refused to pay at least $500 million in severance to thousands of employees&nbsp;— fired in mass lay-offs when he acquired the social media company Twitter, now rebranded as X.

Ex-Twitter employees claim that one of the world's richest men, Musk, did not provide them with the appropriate severance packages, as promised under a severance plan outlined in 2019.&nbsp;

Instead, they claim they only received one month of severance pay without any benefits.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/senator-peter-welch-urges-biden-to-quit-2024-race-as-democrats-challenge-him-to-prove-re-election-viability-739787">Senator Peter Welch urges Biden to quit 2024 race, as Democrats challenge him to prove re-election viability</a>

<h2>Court ruling</h2>

US District Judge Trina Thompson ruled on Tuesday (Jul&nbsp;9) that the claims brought by former Twitter employees did not fall under the federal Employee Retirement Income Security Act (Erisa), which governs benefit plans. She said that, as such, the court lacked jurisdiction to hear the case.

Judge Thompson determined that Erisa did not apply to the severance plan because it did not constitute an "ongoing administrative scheme" involving case-by-case review or additional benefits such as continued health insurance or outplacement services.&nbsp;

"There were only cash payments promised," she stated in her ruling.

Also read |&nbsp;<a href="https://www.wionews.com/world/isis-leader-al-baghdadis-wife-asma-mohammed-sentenced-to-death-in-iraq-for-crimes-against-humanity-739748">ISIS leader al-Baghdadi's wife, Asma Mohammed, sentenced to death for 'crimes against humanity'</a>

The judge noted that the plaintiffs might amend their complaint to pursue claims not governed by Erisa.

<h2>Ongoing legal battles for Musk</h2>

The decision comes amidst multiple lawsuits Musk faces over his business practices at his companies&nbsp;— X, Tesla, and SpaceX&nbsp;— which include allegations of gender discrimination, defamation, and retaliatory firings.

Musk's lawyers were also involved in court proceedings this week over his contested multibillion-dollar compensation package as Tesla’s CEO. The court is set to decide whether the lawyers who successfully argued for the invalidation of Musk’s pay should receive $7 billion in legal fees, a record-breaking sum in US legal history.

(With inputs from agencies)

In a tremendous legal victory for Tesla CEO Elon Musk, a San Francisco-based US court on Wednesday (Jul 10) dismissed a lawsuit alleging that the billionaire refused to pay at least $500 million in severance to thousands of employees — fired in mass lay-offs when he acquired the social media company Twitter, now rebranded as X.

In a tremendous legal victory for Tesla CEO Elon Musk, a San Francisco-based US court on Wednesday (Jul 10) dismissed a lawsuit alleging that the billionaire refused to pay at least $500 million in severance to thousands of employees — fired in mass lay-offs when he acquired the social media company Twitter, now rebranded as X. Ex-Twitter employees claim that one of the world's richest men, Musk, did not provide them with the appropriate severance packages, as promised under a severance plan outlined in 2019. Instead, they claim they only received one month of severance pay without any benefits. Also read | Senator Peter Welch urges Biden to quit 2024 race, as Democrats challenge him to prove re-election viability Court ruling US District Judge Trina Thompson ruled on Tuesday (Jul 9) that the claims brought by former Twitter employees did not fall under the federal Employee Retirement Income Security Act (Erisa), which governs benefit plans. She said that, as such, the court lacked jurisdiction to hear the case. Judge Thompson determined that Erisa did not apply to the severance plan because it did not constitute an "ongoing administrative scheme" involving case-by-case review or additional benefits such as continued health insurance or outplacement services. "There were only cash payments promised," she stated in her ruling. Also read | ISIS leader al-Baghdadi's wife, Asma Mohammed, sentenced to death for 'crimes against humanity' The judge noted that the plaintiffs might amend their complaint to pursue claims not governed by Erisa. Ongoing legal battles for Musk The decision comes amidst multiple lawsuits Musk faces over his business practices at his companies — X, Tesla, and SpaceX — which include allegations of gender discrimination, defamation, and retaliatory firings. Musk's lawyers were also involved in court proceedings this week over his contested multibillion-dollar compensation package as Tesla’s CEO. The court is set to decide whether the lawyers who successfully argued for the invalidation of Musk’s pay should receive $7 billion in legal fees, a record-breaking sum in US legal history. (With inputs from agencies)

US court dismisses $500 million severance lawsuit against Elon Musk

elon-musk-case

Elon Musk Case, News on Elon Musk Case, stories on Elon Musk Case, articles on Elon Musk Case, Elon Musk Case stories at Wion, Elon Musk Case news, Elon Musk Case latest news

elon musk-case

US court dismisses $500 million severance lawsuit against Elon Musk