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 response to a memo obtained by Bloomberg Information.
The decision of the dispute, which was dealt with by arbitration, comes virtually 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 hundreds of former staff who’ve filed comparable arbitration grievances.
“The arbitrator awarded the complete severance package deal to our consumer,” lawyer Shannon Liss-Riordan mentioned within the memo Monday, which was obtained from two former Twitter staff who declined to be recognized disclosing confidential data. “We’re enthusiastic about this growth and hope it foreshadows extra excellent news to return.”
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 title the billionaire selected to rebrand Twitter — defeated a lawsuit alleging that not less than $500 million in severance pay was owed to about 6,000 laid-off staff below provisions of the federal Worker Retirement Earnings Safety Act.
Within the memo, Liss-Riordan mentioned that 15 instances have had arbitration hearings and she or he expects extra rulings to return out within the subsequent couple of months.
“It’s our hope that if extra rulings come down our means, Twitter/X can be prepared to return to the desk and negotiate a settlement for everybody,” she wrote.
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