Twitter Lands in Legal Hot Water As Former Social Media Employees Demand $500 Million In Severance From Musk

Twitter, which was purchased by Tesla CEO Elon Musk in October 2022, is facing a sizable class-action lawsuit as several former employees have come forward to claim $500 million in severance they allege was promised but never paid.

The lawsuit, which comes only days after Mark Zuckerberg’s Threads announcement and was filed Wednesday in the U.S. District Court of Northern California , might have far-reaching ramifications for the internet entrepreneur and the social media company.

The ex-employees claim that Twitter committed to substantial severance payouts during a wave of layoffs that took place under Musk’s watch, according to a Variety report.

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The layoffs and the subsequent dispute have cast a long shadow over Twitter, which was already wrestling with dwindling traffic and increased competition.

The outcome of this case could set a precedent for future corporate layoffs, particularly within the tech industry, as the world watches how Musk handles this legal dispute.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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