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;

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<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.

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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's Twitter has been accused of illegally laying off contract workers without notice, in the sixth lawsuit the social media company is facing for allegedly violating labour laws at San Francisco federal court. The lawsuit stems from a series of cost-cutting methods brought about by Twitter soon after billionaire business magnate Elon Musk took over as the company's new owner.

The proposed class action claims that Twitter in November last year laid off several workers employed by staffing firm TEKsystems Inc. without the 60-day advance notice mandated by United States&nbsp;and California law.

Other cases pending against Twitter include lawsuits accusing the social media company of targeting female workers during&nbsp;layoffs and discriminating against employees with disabilities. Twitter has denied any wrongdoing.

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Twitter laid off about 3,700 employees, translating to about half its workforce in November 2023.&nbsp;

Musk paid $44 billion to acquire the social media platform. After Musk's takeover of the platform, hundreds more employees subsequently resigned.

ALSO WATCH |&nbsp;Elon Musk takes U-turn on layoffs at Twitter, to cut 50 more jobs | WION Pulse | English News

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Shannon Liss-Riordan, who represents the plaintiffs in all of the cases, told Reuters in an email: "While Elon Musk seems to think he's saving the company money by avoiding these obligations, we plan to show him that not meeting his responsibilities can be a lot more costly."

Liss-Riordan said she also has filed complaints in private arbitration on behalf of more than 1,700 former Twitter employees and contractors who signed agreements to arbitrate legal disputes. She claimed that workers employed by TEKsystems did not sign arbitration agreements.

Liss-Riordan also represents workers who have filed complaints against Twitter with a US&nbsp;labour board claiming they were fired for criticising the company, attempting to organise a strike and other conduct protected by the US federal labour law.

(With inputs from agencies)

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Elon Musk's Twitter has been accused of illegally laying off contract workers without notice, in the sixth lawsuit the social media company is facing for allegedly violating labour laws at San Francisco federal court.

Elon Musk's Twitter has been accused of illegally laying off contract workers without notice, in the sixth lawsuit the social media company is facing for allegedly violating labour laws at San Francisco federal court. The lawsuit stems from a series of cost-cutting methods brought about by Twitter soon after billionaire business magnate Elon Musk took over as the company's new owner. The proposed class action claims that Twitter in November last year laid off several workers employed by staffing firm TEKsystems Inc. without the 60-day advance notice mandated by United States and California law. Other cases pending against Twitter include lawsuits accusing the social media company of targeting female workers during layoffs and discriminating against employees with disabilities. Twitter has denied any wrongdoing. ALSO READ | Twitter layoffs impact at least 50% of employees, reassures content moderation amid speculations Twitter laid off about 3,700 employees, translating to about half its workforce in November 2023. Musk paid $44 billion to acquire the social media platform. After Musk's takeover of the platform, hundreds more employees subsequently resigned. ALSO WATCH | Elon Musk takes U-turn on layoffs at Twitter, to cut 50 more jobs | WION Pulse | English News × Shannon Liss-Riordan, who represents the plaintiffs in all of the cases, told Reuters in an email: "While Elon Musk seems to think he's saving the company money by avoiding these obligations, we plan to show him that not meeting his responsibilities can be a lot more costly." Liss-Riordan said she also has filed complaints in private arbitration on behalf of more than 1,700 former Twitter employees and contractors who signed agreements to arbitrate legal disputes. She claimed that workers employed by TEKsystems did not sign arbitration agreements. Liss-Riordan also represents workers who have filed complaints against Twitter with a US labour board claiming they were fired for criticising the company, attempting to organise a strike and other conduct protected by the US federal labour law. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Lawsuit after lawsuit! Elon Musk's Twitter accused of illegal layoffs

Tesla Chief Executive <a href="https://www.wionews.com/world/pedo-guy-tweet-not-meant-to-be-taken-literally-elon-musk-266052">Elon Musk</a> was due to resume testifying in his own defense on Wednesday at the trial for a defamation lawsuit filed by a British diver whom the Silicon Valley billionaire called "pedo guy" on Twitter.

Musk, the 48-year-old South African-born entrepreneur, apologized for the tweet during his first day on the witness stand in US&nbsp;District Court in Los Angeles on Tuesday, saying he was responding to an "unprovoked" insult by plaintiff Vernon Unsworth.

Unsworth was leading a rescue of 12 boys and their soccer coach from a flooded cave in Thailand last year when he mocked Musk's offer of a mini-submersible as a public relations stunt in an interview on CNN, adding that the Tesla Inc founder should "stick his submarine where it hurts."

"I assume he did not mean to sodomize me with a submarine. ... Just as I didn't literally mean he was a pedophile," Musk said from the witness stand under questioning by Unsworth's attorney, Lin Wood.

Unsworth is seeking unspecified compensatory and punitive damages from Musk, who also founded rocket company SpaceX, saying the false claims that he is a pedophile harmed his reputation.

Musk was called to testify on Tuesday by the plaintiff's lawyers after a jury was selected in the high-profile case and lawyers for both sides delivered opening statements.

US&nbsp;District Judge Stephen Wilson has said the case hinges on whether a reasonable person would take <a href="https://www.wionews.com/world/elon-musk-trial-in-us-court-over-pedo-guy-tweet-266004">Musk's tweet</a> to mean that he was calling Unsworth a pedophile.

To win the defamation case, Unsworth needs to show that Musk was negligent in publishing a falsehood that clearly identified the plaintiff and caused him harm. "Actual malice" on Musk's part does not need to be proven because the judge has deemed Unsworth a private individual, not a public figure.

Although the case does not involve&nbsp;Tesla, Musk's Twitter habits have long been under close scrutiny, with the company's investors and regulators expressing concerns about his tweets.

With 29.8 million followers, Musk's social media account is a major source of publicity for his Palo Alto, California-based electric car company, which does not advertise.

In his opening statement, Unsworth attorney Taylor Wilson said the tweet was more than a slip-up, and Musk had wrongly branded Unsworth a predator "in what should have been one of the proudest moments of his life."

Musk lawyer Alex Spiro countered that Unsworth did not act after the tweet like a man who suffered because of it.

"The plaintiff is saying he has been horribly damaged, and deserves money," Spiro said. "He doesn't."

Tesla Chief Executive Elon Musk was due to resume testifying in his own defense on Wednesday at the trial for a defamation lawsuit filed by a British diver whom the Silicon Valley billionaire called "pedo guy" on Twitter.

Tesla Chief Executive Elon Musk was due to resume testifying in his own defense on Wednesday at the trial for a defamation lawsuit filed by a British diver whom the Silicon Valley billionaire called "pedo guy" on Twitter. Musk, the 48-year-old South African-born entrepreneur, apologized for the tweet during his first day on the witness stand in US District Court in Los Angeles on Tuesday, saying he was responding to an "unprovoked" insult by plaintiff Vernon Unsworth. Unsworth was leading a rescue of 12 boys and their soccer coach from a flooded cave in Thailand last year when he mocked Musk's offer of a mini-submersible as a public relations stunt in an interview on CNN, adding that the Tesla Inc founder should "stick his submarine where it hurts." "I assume he did not mean to sodomize me with a submarine. ... Just as I didn't literally mean he was a pedophile," Musk said from the witness stand under questioning by Unsworth's attorney, Lin Wood. Unsworth is seeking unspecified compensatory and punitive damages from Musk, who also founded rocket company SpaceX, saying the false claims that he is a pedophile harmed his reputation. Musk was called to testify on Tuesday by the plaintiff's lawyers after a jury was selected in the high-profile case and lawyers for both sides delivered opening statements. US District Judge Stephen Wilson has said the case hinges on whether a reasonable person would take Musk's tweet to mean that he was calling Unsworth a pedophile. To win the defamation case, Unsworth needs to show that Musk was negligent in publishing a falsehood that clearly identified the plaintiff and caused him harm. "Actual malice" on Musk's part does not need to be proven because the judge has deemed Unsworth a private individual, not a public figure. Although the case does not involve Tesla, Musk's Twitter habits have long been under close scrutiny, with the company's investors and regulators expressing concerns about his tweets. With 29.8 million followers, Musk's social media account is a major source of publicity for his Palo Alto, California-based electric car company, which does not advertise. In his opening statement, Unsworth attorney Taylor Wilson said the tweet was more than a slip-up, and Musk had wrongly branded Unsworth a predator "in what should have been one of the proudest moments of his life." Musk lawyer Alex Spiro countered that Unsworth did not act after the tweet like a man who suffered because of it. "The plaintiff is saying he has been horribly damaged, and deserves money," Spiro said. "He doesn't."

Elon Musk due back on witness stand in defamation trial stemming from tweets

The CEO of <a href="https://www.wionews.com/business-economy/musk-suggests-tesla-has-200000-orders-for-cybertruck-264354">Tesla</a> and SpaceX, Elon Musk, is due to take the stand to go on trial for a defamation suit filed against him by Vernon Unsworth, British cave explorer who helped with the rescue of 12 boys and their soccer coach from the Tham Luang Nang Non <a href="https://www.wionews.com/south-asia/thailand-cave-rescue-the-survival-story-of-2018-186098">cave in Thailand</a> in July 2018.

Musk in a now-deleted tweet had described Unsworth as a “pedo guy” for which Unsworth is now seeking punitive and compensatory damages for harming his reputation.&nbsp;

The trial which begins on Tuesday before US District Judge Stephen Wilson in Los Angeles is set to last for five days.&nbsp;

The row started with Musk offering a SpaceX mini-submarine to help with the rescue mission in Thailand, to which Unsworth gave a statement to CNN on July 13, 2018, claiming it to be&nbsp; “PR stunt” and that Musk could “stick his submarine where it hurts."

Two days later, Musk took to Twitter to lash out against Unsworth in a series of tweets, including one which said, “Sorry pedo guy, you really did ask for it."

When questioned about the accusations Musk replied with “bet ya a signed dollar it's true,” all of which were later deleted.&nbsp;

Musk later sent out a tweet expressing apology after Tesla’s stock price dipped by as much as 4 per cent.&nbsp;

“His actions against me do not justify my actions against him...spoken in anger after Mr Unsworth said several untruths and suggested I engage in a sexual act with the mini-sub, which had been built as an act of kindness and according to specifications from the dive team leader,” Musk tweeted.&nbsp;

Judge Wilson earlier denied Musk’s legal team’s request to define Unsworth as a “public figure” due to which Unsworth does not have to provide proof that Musk acted with “actual malice”, lowering the bar necessary to win the case.&nbsp;

Unsworth now only needs to prove negligence on Musk’s side and not an actual intent to defame. Unsworth is required to prove Musk’s comments to be false and that people believed them to be true.&nbsp;

Musk is <a href="https://www.wionews.com/business-economy/musk-to-testify-in-own-defense-in-defamation-trial-his-lawyer-says-264544">expected to testify</a> in his own defence with his legal team insisting on not making any out-of-court settlements.&nbsp;

“Pedo guy was a common insult used in South Africa when I was growing up,”&nbsp; said Musk in a court filing in an attempt to have the case thrown out of court, which was claimed to be “offensive to the truth” by Unsworth’s legal team.&nbsp;

"It is synonymous with ‘creepy old man’ and is used to insult a person’s appearance and demeanour, not accuse a person of paedophilia.”

Musk’s legal team has claimed that the tweets were Musk’s opinion, not a statement of fact, and also that Unsworth aimed to gain profit from his role in the rescue mission.&nbsp;

The team also claims that Unsworth’s comments to CNN implying that Musk did not care about the lives of the trapped boys provoked Musk’s response.&nbsp;

The CEO of Tesla and SpaceX, Elon Musk, is due to take the stand to go on trial for a defamation suit filed against him by Vernon Unsworth, British cave explorer who helped with the rescue of 12 boys and their soccer coach from the Tham Luang Nang Non cave in Thailand in July 2018.

The CEO of Tesla and SpaceX, Elon Musk, is due to take the stand to go on trial for a defamation suit filed against him by Vernon Unsworth, British cave explorer who helped with the rescue of 12 boys and their soccer coach from the Tham Luang Nang Non cave in Thailand in July 2018. Musk in a now-deleted tweet had described Unsworth as a “pedo guy” for which Unsworth is now seeking punitive and compensatory damages for harming his reputation. The trial which begins on Tuesday before US District Judge Stephen Wilson in Los Angeles is set to last for five days. The row started with Musk offering a SpaceX mini-submarine to help with the rescue mission in Thailand, to which Unsworth gave a statement to CNN on July 13, 2018, claiming it to be “PR stunt” and that Musk could “stick his submarine where it hurts." Two days later, Musk took to Twitter to lash out against Unsworth in a series of tweets, including one which said, “Sorry pedo guy, you really did ask for it." When questioned about the accusations Musk replied with “bet ya a signed dollar it's true,” all of which were later deleted. Musk later sent out a tweet expressing apology after Tesla’s stock price dipped by as much as 4 per cent. “His actions against me do not justify my actions against him...spoken in anger after Mr Unsworth said several untruths and suggested I engage in a sexual act with the mini-sub, which had been built as an act of kindness and according to specifications from the dive team leader,” Musk tweeted. Judge Wilson earlier denied Musk’s legal team’s request to define Unsworth as a “public figure” due to which Unsworth does not have to provide proof that Musk acted with “actual malice”, lowering the bar necessary to win the case. Unsworth now only needs to prove negligence on Musk’s side and not an actual intent to defame. Unsworth is required to prove Musk’s comments to be false and that people believed them to be true. Musk is expected to testify in his own defence with his legal team insisting on not making any out-of-court settlements. “Pedo guy was a common insult used in South Africa when I was growing up,” said Musk in a court filing in an attempt to have the case thrown out of court, which was claimed to be “offensive to the truth” by Unsworth’s legal team. "It is synonymous with ‘creepy old man’ and is used to insult a person’s appearance and demeanour, not accuse a person of paedophilia.” Musk’s legal team has claimed that the tweets were Musk’s opinion, not a statement of fact, and also that Unsworth aimed to gain profit from his role in the rescue mission. The team also claims that Unsworth’s comments to CNN implying that Musk did not care about the lives of the trapped boys provoked Musk’s response.

Elon Musk to go to court in defamation trial over ‘pedo guy’ tweet