Elon Musk’s X Corp. has reached a tentative agreement to settle a class-action lawsuit that sought at least $500 million in severance pay for roughly 6,000 employees laid off after Musk’s 2022 acquisition and rebranding of Twitter. Attorneys for both sides told the Ninth U.S. Circuit Court of Appeals they had struck a deal and asked the court to postpone oral arguments scheduled for 17 September while they complete settlement paperwork. Financial terms were not disclosed and the agreement will still require approval from a federal district judge. The lawsuit, led by former Twitter managers Courtney McMillian and Ronald Cooper, alleged that a 2019 severance plan guaranteed most workers two months of base pay plus an additional week per year of service, with senior staff entitled to as much as six months’ salary. Plaintiffs claimed many employees received at most one month’s pay—or nothing—after the mass layoffs that cut Twitter’s workforce by about 80%. A San Francisco judge dismissed the case in July 2024, finding the severance plan was not governed by federal benefits law, but the workers appealed with support from the U.S. Department of Labor. The tentative settlement, if approved, would conclude one of several lawsuits still pending over the job cuts imposed soon after Musk took control of the company.