Elon Musk misplaced a authorized struggle over unpaid severance to a former Twitter worker who was laid off when he took over the social media platform in 2022, in keeping with a memo obtained by Bloomberg Information.
The decision of the dispute, which was dealt with by means of arbitration, comes nearly two years after Musk acquired Twitter for $44 billion and promptly fired over half of the workers.
The transfer sparked greater than 2,000 complaints from ex-employees who claimed they have been shortchanged on pay. The victory in Friday’s case may set a precedent for the 1000’s of former workers who’ve filed comparable arbitration grievances.
“The arbitrator awarded the complete severance bundle to our consumer,” lawyer Shannon Liss-Riordan mentioned within the memo Monday, which was obtained from two former Twitter workers who declined to be recognized disclosing confidential data. “We’re enthusiastic about this growth and hope it foreshadows extra excellent news to come back.”
Liss-Riordan declined to remark or to reveal the arbitrator’s written ruling following her consumer’s closed-door continuing with a non-public decide.
X didn’t reply to a request for remark.
In July, Musk and X Corp. — the identify the billionaire selected to rebrand Twitter — defeated a lawsuit alleging that a minimum of $500 million in severance pay was owed to about 6,000 laid-off workers beneath provisions of the federal Worker Retirement Revenue Safety Act.
Within the memo, Liss-Riordan mentioned that 15 circumstances have had arbitration hearings and she or he expects extra rulings to come back out within the subsequent couple of months.
“It’s our hope that if extra rulings come down our manner, Twitter/X will likely be prepared to come back to the desk and negotiate a settlement for everybody,” she wrote.
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