Elon Musk rushes into a class action lawsuit for refusing $500 million in retirement benefits that were supposed to be paid to former Twitter employees


by

Thomas Hawk

Former employees file a class action lawsuit against Twitter, alleging that Elon Musk refused to pay promised severance payments after Elon Musk bought Twitter and laid off thousands of employees. raised.

Twitter owes ex-employees $500 mln in severance, lawsuit claims | Reuters
https://www.reuters.com/legal/twitter-owes-ex-employees-500-mln-severance-lawsuit-claims-2023-07-12/



Musk, Twitter Hit With $500 Million Lawsuit Over Severance Payments - Variety

https://variety.com/2023/digital/news/twitter-elon-musk-employee-severance-500-million-class-action-lawsuit-1235668194/

The plaintiff was represented by Courtney McMillian, who was in charge of the employee benefits program on Twitter. According to McMillian, Twitter has a retirement plan under the Employee Retirement Income Security Act of 1974 (ERISA) , which pays two months of base salary at the time of dismissal and one week for each year of service. He was promised that he would be paid severance pay. However, even though Mr. Mask promised to pay three months' worth of retirement allowance from his own mouth, he only paid one month's retirement allowance, which is less than the regulation, and many employees did not pay a penny. McMillian claimed he never received it.

McMillian and others are suing Twitter and Mask for violating federal laws regulating employee benefits. McMillian himself has been fired from Twitter on January 4, 2023.

The plaintiff asked Twitter to pay damages of at least $ 500 million (about 69 billion yen), vested stocks and bonuses, cash contributions to health insurance, and 3 to 6 months of reemployment support services. rice field.



After taking control of Twitter in October 2022, Musk dismissed several executives and dismantled the board of directors. After that, we implemented four large-scale layoffs of employees, reducing the number of employees from an estimated 7,800 to about 1,500. Due to this effect, Twitter has been sued in several cases.

In May 2023, a class action lawsuit was filed that targeted female employees for dismissal, and a complaint was filed that they discriminated against employees with disabilities. Both of these cases have been dismissed for lacking specifics, but attorney Shannon Rhys Riordan, who represented the plaintiffs in the two lawsuits, said, ``The group that my firm handles. There are 11 lawsuits alone, and about 2,000 arbitrations,” which indicates the number of related lawsuits.

In addition, Mr. Mask is suing a law firm attached to Twitter regarding the acquisition of Twitter.

Elon Musk sued law firm contracted with Twitter for damages of $ 90 million - GIGAZINE



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