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Elon Musk’s X wins $500M severance lawsuit from ex-workers

Billionaire tycoon Elon Musk won a lawsuit on Tuesday after a San Francisco federal court sided with Musk in a lawsuit filed by fired employees of Company X who claim he didn’t pay them $500 million in severance pay.

U.S. District Judge Trina Thompson ruled Tuesday that about 6,000 employees who were laid off after Musk bought what was then known as Twitter in 2022 are not entitled to severance pay under the federal Employee Retirement Income Security Act (ERISA).

In his ruling, Judge Thompson noted that after Musk’s acquisition, Twitter’s management had informed employees that departing employees would be paid in cash.

A federal judge in San Francisco on Tuesday ruled in favor of Elon Musk, who was sued by former Twitter employees seeking his termination. SYSPEO/SIPA/Shutterstock

Musk, who bought Twitter for $44 billion in late 2022, has fired most of the company’s employees, prompting the fired employees to file multiple lawsuits seeking severance pay.

The lawsuit was filed jointly by Twitter’s former head of total compensation Courtney McMillian and another former manager. According to Bloomberg News.

They argued that as senior managers, they were entitled to six months’ base salary plus one week’s severance pay for each year of experience.

According to the plaintiffs, employees with less tenure are entitled to two months’ basic salary plus one week’s allowance for each year of service.

The lawsuit alleges that some of the fired employees received no severance pay at all, while others received only one month’s pay.

“I have offered everyone who left the company 3 months severance pay, 50% more than is legally required,” Musk posted after taking over the company in October 2022.

Last year, Musk renamed Twitter to X. Laid-off employees say they should be given $500 million in severance packages. AP

The Post has reached out to lawyers for Mr. X and Mr. McMillian for comment.

Several similar lawsuits brought by fired employees are currently pending in court.

Former Twitter employees have accused the company of targeting women, minorities and people with disabilities for dismissal, failing to provide advance notice as required by federal and state law, and refusing to pay promised bonuses.

Musk bought the company, then known as Twitter, in the fall of 2022 for $44 billion. Elon Musk’s Twitter account/AFP

The company has denied any wrongdoing. Musk renamed Twitter to X in July of last year.

Earlier this year, four former executives, including Twitter’s former CEO Parag Agrawal, sued Musk for a combined $128 million in unpaid severance pay.

The other plaintiffs in the lawsuit are Twitter’s former Chief Financial Officer Ned Segal, former Chief Legal Officer Vijaya Gadde and former General Counsel Sean Edgett.

Musk fired his executives just minutes after officially taking control of the company.

The former executives claim Musk fired them in retaliation for lawsuits they filed against the billionaire alleging he falsely accused them of wrongdoing and tried to withdraw his bid to buy the company.

“This is Musk’s modus operandi: keeping money he owes others and suing them,” the former executives said in the 39-page complaint.