Archive · 22 Aug 2025
X Corp, Musk Reach Settlement in Severance Lawsuit
After Elon Musk bought Twitter and changed its name to X Corp, many employees lost their jobs.
These former employees sued X Corp because they believed they were owed severance pay.
The employees said they were promised a certain amount of money if they were laid off.
Now, X Corp and the former employees have agreed on a deal to end the lawsuit.
They are working to finalize this agreement.
A court hearing has been postponed to allow time for the settlement to be finalized, but the details are not yet public.
X Corp and former employees reached a tentative settlement.
The lawsuit concerned severance pay for employees laid off after Elon Musk's acquisition.
The deal was reported in a Wednesday court filing.
The 9th U.S. Circuit Court of Appeals delayed a hearing to finalize the agreement.
The financial terms of the settlement remain undisclosed.
- Who
- The parties involved are X Corp (formerly Twitter) and former Twitter employees.
- What
- X Corp reached a tentative settlement with former Twitter employees regarding severance pay.
- When
- The agreement was reported in a court filing on Wednesday.
- Where
- The lawsuit was filed in California, with an appeal in the 9th U.S. Circuit Court of Appeals.
- Why
- The settlement aims to resolve a legal dispute over severance pay following mass layoffs after Elon Musk's acquisition.
Former Employees
X Corp
Severance Pay
Former Employees
Claimed entitlement to severance pay based on Twitter's 2019 plan.
X Corp
X Corp reduced or denied severance packages.
- Company
- X Corp (formerly Twitter)
- Issue
- Severance Pay
- Plaintiffs
- Former Twitter employees
- Amount Claimed
- $500 million (approximate)
- Agreement
- Tentative Settlement
- Court
- 9th U.S. Circuit Court of Appeals
Sources
Elon Musk’s X Corp agrees to settle $500 million severance lawsuit with ex-Twitter staff - Telegraph India
Musk, X Corp to settle $500-million lawsuit over Twitter firings
Elon Musk’s X reaches tentative settlement in $500M severance lawsuit with former Twitter workers
Elon Musk’s X Nears Settlement in $500M Severance Dispute with Former Twitter Employees
