Twitter is facing yet another lawsuit from former employees who allege that the company has failed to fulfill its promise of paying over $500 million in severance to thousands of workers who were laid off following Elon Musk’s acquisition of the company.
The lawsuit, filed as a class action in San Francisco federal court, was initiated by Courtney McMillian, who served as Twitter’s “head of total rewards” responsible for employee benefits programs before being laid off in January.
According to McMillian’s claims, Twitter introduced a severance plan in 2019 that outlined specific compensation for laid-off workers. Under this plan, most employees were promised two months of their base pay along with an additional week of pay for each full year of service. However, senior employees like McMillian were entitled to six months of base pay.
The lawsuit alleges that Twitter only provided a maximum of one month of severance pay to the laid-off workers, and many received no compensation at all.
The legal action accuses both the company and Elon Musk of violating a federal law that governs employee benefit plans. Other previous lawsuits against Twitter regarding severance payments were based on breach of contract claims rather than violations of the benefits law.
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Twitter Denies The Allegations
This is not the only lawsuit that Twitter is facing this year. In recent months, the company has also been sued by current and former employees for failing to pay bonuses, by music publishers for copyright infringement, and by landlords for unpaid rent.
Twitter has denied any wrongdoing in these lawsuits. However, the outcome of these legal actions could have significant implications for the company, as they will determine whether Twitter violated employee benefits laws. If found guilty, Twitter could face severe financial consequences.
Additional Details About The Twitter Lawsuit
- In February 2023, a group of Twitter employees filed a lawsuit alleging that the company failed to pay out its 2022 bonuses. The lawsuit claims that Twitter promised to pay out the bonuses at 50% of the target amounts, but then backed out of its commitment.
- In March 2023, a group of 17 music publishers sued Twitter for copyright infringement on about 1,700 songs. The publishers are seeking as much as $250 million in damages.
- In April 2023, several landlords of Twitter’s offices filed lawsuits against the company for unpaid rent. The landlords allege that Twitter owes them millions of dollars in rent.
The outcome of these lawsuits could have a significant impact on Twitter’s future. If Twitter is found to have violated employee benefits laws, it could face severe financial consequences. Additionally, the copyright infringement lawsuit could force Twitter to pay = millions of dollars in damages. And the unpaid rent lawsuits could force Twitter to vacate its offices.
Conclusion
It remains to be seen how these lawsuits will be resolved. However, they are a sign of the legal challenges that Twitter is facing under Elon Musk’s ownership.
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