US Judge Dismisses Severance Case Against Elon Musk's Twitter

A case brought by previous Twitter workers, who accused Elon Musk of unlawfully denying around $500m in severance payments owed to employees laid off when he bought the organization, was dismissed by a US judge.

The judge ruled that the plaintiffs did not prove their claims were protected by federal law thus leading to Musk’s triumph. The lawsuit filed following Musk’s acquisition of Twitter in 2022 and subsequent mass redundancy notices resulted into multiple lawsuits filed by former workers and suppliers for unpaid pledges.

Another complaint lodged before a federal court in San Francisco precisely in 2023 was submitted by Courtney McMillian, formerly known as X, who served as Twitter "head of total rewards." In her complaint, McMillian stated that instead of the promised packages consisting of at least two months’ pay plus health insurance costs covered premiums, just one month salary had been given as severances to staff.

Regarding Musk’s legal team position on Employee Retirement Income Security Act (ERISA) which governs private healthcare policies and pension schemes; they said these claims did not fall within ERISA jurisdiction. Nonetheless Thompson J noted that they might be right about lack of jurisdiction in this court while suggesting other pending cases where such persons can find redress.

“Disappointed with the ruling, we are considering our next steps,” stated a representative of McMillian’s team.

However, this judgment does not signify the end of court cases targeting Musk’s Twitter. Moreover, there are other lawsuits, such as one filed by former executives that are still pending. Thompson’s verdict highlighted these other cases which indicate that employees may have other options to pursue their allegations in another forum.

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Elon Musk, Twitter, X, severance payments, lawsuit, federal court, Judge Trina Thompson, Employee Retirement Income Security Act, ERISA, employee rights, labor dispute, corporate law, Courtney McMillian, social media, tech industry, legal ruling, employment law, company takeover, staff layoffs, US legal system