Musk files motion to dismiss $500M ex-Twitter employees severance lawsuit

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Update:

• Elon Musk asked a Delaware federal court to dismiss a complaint accusing him and X, formerly known as Twitter, of misleading terminated employees and failing to pay them at least $500 million in severance. 
• Musk argues he cannot be held personally liable for the workers’ claims and that he specifically has not been alleged to have made misrepresentations about severance benefits. 
• A terminated Twitter worker argues thousands of employees who were let go after Musk took over the company in October 2022 received emails outlining severance packages that were “far less” than what they had been promised. 
• Musk argues the accusations are “purely conclusory and threadbare.” 

Twitter severance class action overview: 

• Who: Plaintiff Chris Woodfield filed a class action lawsuit against Twitter Inc., X Corp., X Holdings I, X Holding Corp. and Elon Musk.  
• Why: Woodfield claims Twitter failed to pay promised severance and later refused to follow the terms of a dispute resolution agreement.
• Where: The Twitter class action was filed in federal court in Delaware.

(July 20, 2023)

Plaintiff Chris Woodfield filed a class action lawsuit against Twitter Inc., X Corp., X Holdings I, X Holding Corp. and Elon Musk claiming the companies and CEO failed to pay severance to former employees despite promising to do so and later not following a dispute resolution agreement with the former employees.

Twitter laid off, fired or engineered the resignations of more than 5,000 employees within less than two months of Musk taking over and finangled those resignations so the company was not obligated to pay what was estimated to be nine figures’ worth of severance, the class action claims.

Twitter laid off Woodfield on Jan. 4, after the merger closed, and has not paid a severance he claims the company repeatedly promised from the date of his employment to a company FAQ in April 2022 to a repeated message in October 2022 as the acquisition was about to close.

“Those communications were made at a time of significant uncertainty and employee concern — among other things, Musk and Twitter were litigating over whether Musk could escape his agreement to purchase Twitter — and, on information and belief, were made in order to assuage that concern and convince Twitter employees to stay at Twitter through the merger,” the class action says.

Twitter employees also denied arbitration promised in signed agreements, class action alleges

Twitter employees were required to sign a dispute resolution agreement upon hiring that stated they would be eligible for arbitration if a dispute arose that could not be resolved.

But employees have been denied that arbitration, according to the Twitter severance class action. The class is asking for compensatory damages, including severance with interest, along with preliminary and permanent injunctive relief and attorneys’ fees.

Twitter is no stranger to employment lawsuits. Earlier this month, it was hit with a class action lawsuit from former employees who were laid off, terminated or constructively discharged over delayed arbitration hearings.

Have you been ever fired without severance? Let us know in the comments.

The plaintiffs are represented by Joseph L. Christensen of Christenson and Dougherty LLP and Akiva Cohen, Lane Haygood, Dylan M. Schmeyer and Michael D. Dunford of Kamerman, Uncyk, Soniker and Klein PC.

The Twitter severance class action lawsuit is Woodfield, et al. v. Twitter Inc., et al, Case No. 1:23-cv-00780-UNA, in the U.S. District Court for the District of Delaware.

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