Elon Musk’s social media platform X has reached a tentative settlement with former Twitter employees who sued the company for failing to pay them severance after mass layoffs. The agreement comes after a years-long legal battle, with former staff seeking $500m in compensation.
The lawsuit claimed that Musk failed to honor a 2019 severance plan, which promised laid-off workers at least two months of pay plus additional compensation depending on their time worked at the company. Instead, some employees received no payment at all.
The tentative agreement was announced after a court filing requested that a scheduled hearing be postponed while the parties finalized the deal. The terms of the settlement were not disclosed, leaving it unclear what level of compensation former employees will receive.
This latest development is a turnaround from last year’s ruling, which saw a US district judge dismiss one of the suits in favor of Musk. However, former Twitter executives are still suing Musk in a separate case over unpaid severance, citing an additional $128m owed to them.
The settlement marks a significant move by Musk and his company after months of legal battles over issues stemming from his acquisition of Twitter last year for $44bn.
Source: https://www.theguardian.com/technology/2025/aug/22/elon-musk-x-settlement-twitter-employees