A federal judge in California dismissed a $500 million class-action lawsuit against Elon Musk and X Corp. (formerly Twitter), which was filed by former employees alleging unpaid severance. U.S. District Judge Trina Thompson ruled that the claims were not covered under the Employee Retirement Income Security Act (ERISA) because the company did not have an ongoing administrative scheme to review severance claims or offer continued health benefits. The plaintiffs argued that thousands of employees were promised more severance pay under Twitter's previous plans, but the court found that Musk's post-takeover plan, which offered only cash payouts, did not violate ERISA. While this ruling ends this particular lawsuit, other similar cases are still pending. The judge allowed the possibility for plaintiffs to amend their complaint based on non-ERISA claims.