X Corp and Elon Musk Reach Settlement Agreement for Twitter Layoff Disputes

According to a memo obtained by Bloomberg News, Elon Musk’s X Corp. has agreed to attempt to resolve allegations made by numerous ex-Twitter employees who claim they were deprived of their rightful severance pay.

“After 10 months of pushing them in every direction, we have succeeded in bringing Twitter to the table,” attorney Shannon Liss-Riordan wrote to her clients in a memo obtained by a former Twitter employee who declined to disclose confidential information. . “Twitter wants to mediate with us in our global effort to resolve any claims we make.”

The company, formerly known as Twitter, has been accused in multiple lawsuits of numerous labor and workplace violations, including failing to pay severance pay to thousands of workers who were laid off late last year after Musk bought the social media platform for $44 billion. Nearly 2,000 former Twitter employees have resorted to fighting their claims in arbitration as required by the company, but Liss-Riordan has complained in court that Twitter has not shown up.

X is complying with the court’s mediation order, the person familiar with the matter said, asking not to be identified to discuss private information.

According to Liss-Riordan’s memorandum, the private negotiations with the mediator are on December 1 and 2.

“We are very proud to represent nearly 2,000 former Twitter employees in individual arbitrations as well as more than a dozen class actions,” Liss-Riordan said in a statement Wednesday night. “We are working hard to recover what they are owed.”

He declined to elaborate or comment on the specifically planned mediation.

X Corp. spokesmen did not immediately respond to requests for comment sent after regular business hours.

A federal judge in San Francisco ruled in January that workers who filed one of the earliest severance claims against Twitter were required by their contracts to go to arbitration, where private judges decide disputes behind closed doors.