U.S. Judge Dismisses $500 Million Severance Claim by Former Twitter Employees After Musk Takeover

In a recent ruling, U.S. District Judge Trina Thompson has dismissed a case seeking $500 million in unpaid severance for thousands of former Twitter employees who were terminated following Elon Musk’s acquisition of the social media platform in November 2022. The plaintiffs, led by former vice president of total rewards Courtney McMillian, argued that the severance payments were protected under the Employee Retirement Income Security Act (ERISA). However, Judge Thompson determined that ERISA did not apply to the severance program at issue but did allow the plaintiffs the opportunity to refile using a different legal basis.

The case was brought on behalf of approximately 6,000 employees, outlining alleged violations of federal law governing benefit plans. For further details, the original article can be accessed here.