A U.S. magistrate judge ruled that social media platform X (formerly Twitter) must face most of a lawsuit filed by six former employees who claim they were not paid severance after being laid off or resigning following Elon Musk’s acquisition of the company. The lawsuit includes claims of wage theft, breach of contract, and failure to provide advance notice of layoffs. The plaintiffs, based in New York, California, and Texas, allege they were denied over $1 million in severance payments after Musk’s $44 billion takeover. One claim is brought under California’s Private Attorneys General Act, allowing the plaintiffs to represent a broader group of former employees.
U.S. Magistrate Judge Christopher Burke recommended that 10 of the 2023 lawsuit’s claims move forward, while dismissing four other allegations, including fraud and breaches of a merger agreement between Musk and the company. Both sides have two weeks to file objections, and U.S. District Judge Jennifer Hall will decide whether to accept or reject the recommendations. The lawsuit is part of a broader legal battle involving the company, which has faced multiple lawsuits related to its mass layoffs and severance issues, including claims of discrimination against women and disabled workers.
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