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 keeping with a memo obtained by Bloomberg Information.
The decision of the dispute, which was dealt with by 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 had been shortchanged on pay. The victory in Friday’s case may set a precedent for the hundreds of former workers who’ve filed related arbitration grievances.
“The arbitrator awarded the full severance package to our client,” lawyer Shannon Liss-Riordan stated within the memo Monday, which was obtained from two former Twitter workers who declined to be recognized disclosing confidential data. “We are excited about this development and hope it foreshadows more good news to come.”
Liss-Riordan declined to remark or to reveal the arbitrator’s written ruling following her consumer’s closed-door continuing with a non-public choose.
X didn’t reply to a request for remark.
In July, Musk and X Corp. — the title the billionaire selected to rebrand Twitter — defeated a lawsuit alleging that no less than $500 million in severance pay was owed to about 6,000 laid-off workers below 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 return out within the subsequent couple of months.
“It is our hope that if more rulings come down our way, Twitter/X will be willing to come to the table and negotiate a settlement for everyone,” she wrote.
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