Elon Musk, X Reach Tentative $500M Twitter Severance Settlement

Elon Musk and his social media company X Corp have reached a tentative agreement to settle a $500 million class-action lawsuit filed by approximately 6,000 former Twitter employees claiming they were denied severance pay after Musk's 2022 acquisition and rebranding of Twitter. The lawsuit, led by former employees Courtney McMillian and Ronald Cooper, asserted that a 2019 severance plan guaranteed two to six months of base pay depending on tenure, but many laid-off workers received less or nothing. Following a dismissal of the case by a federal judge in July 2024, the plaintiffs appealed, and with a September 17 hearing pending, both sides jointly requested a delay to finalize the settlement. The financial terms have not been disclosed, but the deal would resolve litigation in California courts and pause ongoing legal challenges related to terminations and severance pay. This settlement marks a significant development in the broader legal disputes stemming from Musk's takeover and workforce reductions at Twitter, aiming to avoid protracted appeals and litigation distractions. Other related lawsuits remain active in Delaware and California.