Elon Musk's X Corp Reaches Settlement with Ex-Twitter Employees

Elon Musk's X Corp is set to settle a lawsuit with former Twitter employees over $500 million in unpaid severance. The agreement, reported to a U.S. court, seeks to end litigation from mass layoffs following Musk's 2022 acquisition of Twitter. Financial details remain undisclosed.

Elon Musk's X Corp has reached a tentative settlement with former Twitter employees over a $500 million lawsuit regarding unpaid severance pay. The agreement, disclosed in a Wednesday court filing, aims to end ongoing litigation following Musk's massive layoffs post his 2022 acquisition of Twitter.

According to lawyers representing both parties, they have requested the U.S. appeals court to delay a pending hearing to finalize the deal terms, which still remain undisclosed. Musk's rebranding of Twitter to X led to approximately 6,000 employees being laid off, with several suing over severance pay issues.

The proposed settlement resolves a class action filed in California by former Twitter executives Courtney McMillian and Ronald Cooper, who appealed a lawsuit dismissal by a San Francisco federal judge. The lawsuit claimed Twitter violated a 2019 severance plan, affecting many employees during layoffs as a cost-cutting effort.