Twitter Faces $500M Severance Lawsuit for Allegedly Failing to Pay Workers After Elon Musk's Acquisition

  • by:
  • Source: Wayne Dupree
  • 07/13/2023
According to a lawsuit filed on Wednesday, Twitter allegedly refused to pay at least $500m in promised severance to thousands of workers who were fired after Elon Musk acquired the business.

Prior to her dismissal in January, Courtney McMillian served as Twitter's "head of total rewards," and she filed the proposed class action in San Francisco federal court.

According to McMillian, most employees were guaranteed two months of their base pay plus one week of pay for each full year of service under a severance plan Twitter created in 2019. According to the lawsuit, senior workers like McMillian were owed six months of base pay. She also added, Twitter only provided laid-off employees with up to one month's worth of severance pay, and many of them received nothing at all.

After Musk bought the company in October, Twitter fired more than half of its employees in an effort to reduce costs.

There is no longer a media relations division at Twitter. A poop emoji was the company's response to Reuters' request for comment.


According to the lawsuit, employee benefit plans are illegally structured by Twitter and Musk. There have already been lawsuits against Twitter for allegedly failing to pay severance, but those cases center on claims of contract breach rather than benefits law. The business claims to have fully compensated all former employees.

Twitter is being sued for allegedly failing to pay millions of dollars in bonuses it owes to the company's remaining employees. The lawsuit was filed last month. According to Twitter, the claims are unfounded.

The business is also dealing with a number of additional lawsuits resulting from the layoffs that started last year, including allegations that it specifically targeted women and people with disabilities. In the cases for which it has submitted responses, Twitter has refuted any wrongdoing.

Get latest news delivered daily!

We will send you breaking news right to your inbox

© 2024 Wayne Dupree, Privacy Policy