Lawsuit over $500 million severance package nearing resolution for Elon Musk's company X
Headline: Class-Action Lawsuit Against X Over Unpaid Severance Pay Nears Settlement Agreement Worth $500 Million
In a significant development, a class-action lawsuit against tech company X (formerly Twitter) is nearing a settlement agreement worth $500 million. The lawsuit, filed by former employees, alleges that the company violated its severance policy by failing to provide the severance pay that was promised after the mass layoffs following Elon Musk's takeover in October 2022.
The lawsuit accuses X of breaching its policy, which offered two months of base pay and an additional week for every year worked at the company. As a result, the former employees claim they are collectively owed $500 million in severance pay, although the exact amount each plaintiff could receive remains unclear.
The court initially dismissed the case but gave the plaintiffs a chance to amend their complaint and appeal the ruling. After thorough discussions, the parties involved in the lawsuit have now come to a tentative agreement. However, the official approval of the settlement is expected in the first half of 2024.
If approved, the settlement could potentially distribute funds to the members of the settlement classes. The filing states that the settlement will be finalized and administered before upcoming oral arguments. The specifics of the distribution have not been disclosed, but the proposed settlement distribution could resolve the entire litigation over severance pay for former X employees.
Elon Musk officially took over X in October 2022, resulting in the layoff of over 70 percent of the workforce. The terms of use and privacy policy apply to signing up for the Light Speed newsletter on the website.
The court has not yet approved the proposed distribution of funds in the settlement. If approved, the settlement agreement, which includes a distribution of funds to the members of the settlement classes, would moot the ongoing appeal in the case.
This settlement, if approved, could mark a significant step towards resolving the dispute and providing much-needed relief to the affected former employees of X. More updates on the settlement are expected in the coming months.
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