Musk Wins Lawsuit Over $500 Million Severance Claim
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Elon Musk and X Corp. have won a lawsuit demanding $500 million in severance pay for former Twitter employees. The plaintiffs, including Twitter's former global head of compensation and benefits, claimed that about 6,000 laid-off employees received only one month's pay, contrary to promises made under the federal Employee Retirement Income Security Act (ERISA). However, US District Judge Trina Thompson ruled that the claims were not covered under ERISA, as employees were informed they would receive only cash payouts post-acquisition. This verdict allows Musk and X Corp. to avoid the additional $500 million payout sought by the plaintiffs.