Elon Musk’s X Corp. has reached a tentative agreement to settle a lawsuit brought by former Twitter employees who claimed they were collectively owed about $500 million in severance pay following mass layoffs that began after Musk acquired the platform in 2022 and rebranded it as X. Lawyers for both sides told the U.S. Court of Appeals for the Ninth Circuit that they have struck a deal and asked the court to postpone oral arguments that had been scheduled for Sept. 17 so they can finalize the settlement papers. Financial terms were not disclosed, and the agreement will require approval from a federal district judge. The putative class action, led by former benefits chief Courtney McMillian and operations manager Ronald Cooper, alleged that roughly 6,000 workers were entitled to at least two months of base pay plus additional weeks based on tenure— with senior staff owed up to six months—under a 2019 severance plan. A federal judge dismissed the case in July 2024, prompting the appeal now on hold. Separate severance-related suits against X and Musk remain pending in Delaware and California.
Elon Musk, X settle $500M lawsuit by fired Twitter workers https://t.co/tB7WnH8oJa https://t.co/rUWhZ0sgdh
Elon Musk and his social media company X Corp have reached a tentative agreement to settle a lawsuit filed by former Twitter employees who said they were owed $500 million in severance pay. https://t.co/7I7lRVTzHW
Musk, X Corp to settle $500-million lawsuit over Twitter firings https://t.co/jPOTvVqIx0