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 accordance with a memo obtained by Bloomberg Information.
The decision of the dispute, which was dealt with via 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 might set a precedent for the 1000’s of former workers who’ve filed comparable arbitration grievances.
“The arbitrator awarded the full severance package to our client,” 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 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 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 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 underneath provisions of the federal Worker Retirement Revenue Safety Act.
Within the memo, Liss-Riordan mentioned that 15 instances have had arbitration hearings and she or he expects extra rulings to come back 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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