Elon Musk Doesn’t Owe Ex-Twitter Employees $500 Million in Severance Pay, Court Ruling Says

In a victory for Elon Musk, a judge has dismissed a lawsuit that alleged the billionaire owes former Twitter employees more than $500 million in severance pay after buying the social media company and laying off its staff.

The lawsuit filed by former employees alleges that Twitter paid the laid-off employees less severance pay than they were contractually promised, citing protections under the federal Employee Retirement Income Security Act (ERISA).

U.S. District Judge Trina Thompson dismissed the class action lawsuit in San Francisco on Tuesday, arguing that the claims were not covered by ERISA and therefore lacked jurisdiction.

The plaintiffs alleged that the company’s severance plan in place in 2019 promised workers two months of base pay plus a week of pay for every full year of service if they were laid off. At the same time, senior employees were entitled to more than six months of base pay, according to the lawsuit. However, the plaintiffs alleged that Twitter only gave the laid-off workers one month of pay, with no benefits.

Musk certainly still faces legal troubles. The case is just one of many that have sparked widespread controversy. A series of others The world’s richest man has been accused of reneging on promises to former employees and vendors after buying the company in October 2022.