Twitter, owned by Tesla billionaire Elon Musk, is facing yet another legal challenge. Courtney McMillian has filed a case against the social media giant, claiming it failed to pay approximately $500 million owed in severance pay to former employees after mass layoffs that occurred following Elon's acquisition of the company for $44 billion last year.
According to the lawsuit, around 6,000 individuals were affected by the layoffs. The severance plan stipulated a minimum of two months' base salary, along with health insurance contributions for workers, and more substantial severance pay for senior employees like Courtney. However, the complaint alleges that employees received, at most, only three months' pay after termination.
The lawsuit further accuses Elon Musk of misleading employees about the company's commitment to honoring the severance plan, resulting in some employees staying longer with the firm than they would have otherwise. Kate Mueting, the lawyer representing Courtney, asserts that Musk's promises were crucial to prevent mass resignations that could have threatened the viability of the merger and Twitter itself.
Twitter has yet to provide a comment on the matter, and the case adds to the growing legal challenges faced by the social media giant since the acquisition by Elon Musk.
