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Elon Musk does not owe ex-Twitter staffers $500 million in severance, court rules

TechCrunch · 1y

Elon Musk has won a lawsuit that accused him of not providing promised severance pay to more than 6,000 former Twitter employees following his takeover of the company in 2022. The lawsuit claimed that these employees were owed more severance than they received, as stipulated in Twitter's Severance Plan. However, a federal judge ruled that the Employee Retirement Income Security Act (ERISA) protections did not apply in this case. This is not the only legal battle Musk faces over the mass firings, as other lawsuits from former executives and senior employees seek severance payments.