Elon Musk's X Faces 2,200 Arbitration Cases, $3.5M In Filing Fees: Report

Twitter’s successor, X, is grappling with 2,200 arbitration cases and potential filing fees exceeding $3 million, CNBC reported.

These cases were filed by ex-employees following significant changes introduced by Elon Musk after he took over the company.

The figures came to light as part of a Delaware district court lawsuit filed by ex-Twitter employee Chris Woodfield.

Woodfield, an ex-senior staff network engineer at Twitter’s Seattle office, alleges that X failed to meet its severance payment promises and stalled alternative dispute resolution by not paying the required fees for proceeding with the JAMS arbitration system.

With JAMS applying a basic fee across all 2,200 arbitration cases against X, the filing fees could total around $3.5 million, not including potential additional costs.

X’s attorneys argue that the company did not require employees to arbitrate any disputes, thus it should not be liable for the majority of the filing fees.

Woodfield and others in similar predicaments are now seeking to bypass arbitration and bring their cases to trial. Critics view arbitration as a secretive system that hampers transparency in relation to company treatment of employees and case histories.

This case bears similarities to another proposed class action, where ex-employees allege that the company delayed at least 891 arbitration cases by not paying required filing fees.

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