Elon Musk misplaced a authorized combat over unpaid severance to a former Twitter worker who was laid off when he took over the social media platform in 2022, in line with a memo obtained by Bloomberg Information.
The decision of the dispute, which was dealt with by way of arbitration, comes nearly two years after Musk acquired Twitter for $44 billion and promptly fired over half of the employees.
The transfer sparked greater than 2,000 complaints from ex-employees who claimed they had been shortchanged on pay. The victory in Friday’s case might set a precedent for the hundreds of former workers who’ve filed related arbitration grievances.
“The arbitrator awarded the total severance package deal to our shopper,” lawyer Shannon Liss-Riordan stated within the memo Monday, which was obtained from two former Twitter workers who declined to be recognized disclosing confidential info. “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 shopper’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 Earnings Safety Act.
Within the memo, Liss-Riordan stated that 15 instances have had arbitration hearings and he or she expects extra rulings to come back out within the subsequent couple of months.
“It’s our hope that if extra rulings come down our means, Twitter/X might be keen to come back to the desk and negotiate a settlement for everybody,” she wrote.
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