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Elon Musk’s social media company, X Corp, has concluded a provisional agreement to settle a legal action brought by former employees of the company which was then known as Twitter, which argued that they owed $ 500 million in departure compensation.
The two parties disclosed the agreement on Wednesday in a legal file on Wednesday, the two asking an American court of appeal to delay an audience to come to enable them to finalize an agreement to pay the workers dismissed and put an end to the case. The 9th Circuit Court of Appeals agreed on Thursday to postpone the audience.
The San Francisco court had to hear oral arguments on September 17.
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Elon Musk’s social media company, X Corp, has concluded a provisional agreement to settle legal action brought by former employees of the company. (Odd Andersen / AFP via Getty Images / Getty Images)
The financial terms of the agreement have not been disclosed. The regulations would resolve a project for collective appeal brought by former employees Courtney McMillian and Ronald Cooper.
A federal judge rejected the trial of employees last year, but they called on the 9th circuit.
About 6,000 employees were dismissed after the acquisition of Musk in 2022 of the social media giant, which he then renamed to X, as part of a cost reduction measure.
Several former employees continued the company for their dismissals and their departure compensation.
The regulations would resolve a project for collective appeal brought by former employees Courtney McMillian and Ronald Cooper. (Photo of Richard Bord / Wireimage / Getty Images)
The trial brought by McMillian and Cooper argued that a 2019 departure plan guaranteed that most workers would receive two months from their basic salary for more than one week’s salary for each full year of service if they were dismissed.
The complaint said that superior employees like McMillian, who supervised the company’s benefits programs, were six months’ basic salary.
However, the company only offered dismissed workers that a month of dismissal as much as possible, and many of them have received nothing, according to the trial.
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Several former employees continued the company for their dismissals and their departure compensation. (Photo of Muhammed Selim Korkutata / Anadolu via Getty Images / Getty Images)
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Other prosecution, including one filed by leaders such as the former CEO Parag Agrawal, are still pending before the court.
Musk’s efforts to reduce the company’s workforce was before carrying out similar costs reduction measures in its time in the Trump administration’s effectiveness department, or Doge, which reduced the tens of thousands of government employees earlier this year, while it was trying to reduce federal labor.
Reuters contributed to this report.
