A former Twitter employee has filed a $500 million class action suit against Elon Musk and the social media company, alleging they’ve skimped out on severance for the thousands of workers fired since Musk’s takeover last year.
) was brought by Courtney McMillian, a former HR department employee who says she was among 3,700 employees fired on Nov. 4, 2022. The lawsuit claims that, since Musk’s acquisition, the company has “terminated approximately 6,000 employees,” and Twitter has “failed to pay any of these employees the promised severance benefits they were entitled to” under the terms of the Twitter Severance Plan.
The lawsuit alleges that some severance payments have fallen short of what the plan required, while it cites recent reporting that “indicates that some laid-off employees have yet to receive anything.” In total, the lawsuit estimates that “terminated employees are entitled to no less than $500 million.
The suit also alleges that Musk approved an “Acquisition FAQs” document for employees that similarly said severance, bonus plans, and other benefits would be protected for at least one year. The suit later suggests that given “the widespread skepticism” about Musk’s ability to successfully run Twitter, combined with a tightening tech labor market, Musk, Twitter’s new leadership, and even outgoing management “knew that promising continued Plan benefits was necessary to prevent mass resignations that would threaten the viability of the merger deal and, potentially, of the company itself.
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