Lawsuit says Twitter owes $500 million in severance to ex-employees

Per Reuters

A recent lawsuit against Twitter alleged that the company reportedly owned half a billion in severance to ex-employees. These severances were promised to thousands of employees that lost their jobs upon Elon Musk's acquisition.

The proposed class action was filed by Courtney McMillian, who was in charge of "head of total rewards" at Twitter before they she was also laid off. The proposed class action lawsuit was filed in a San Francisco federal court.

According to McMillian, Twitter created the severance plan in 2019, with most of them promised a severance of two months of base play according to a week for every full year they worked with the company. The former head of the company's employee benefits program said that at most, employees were only given a month's worth of severance pay.

Recently, it was reported that Twitter was sued over allegedly ducking around 900 ex-worker arbitration cases ever since Elon Musk acquired the company. Specifically, it was noted that there were 891 cases filed.

In May, it was reported that Twitter won two lawsuits regarding mass layoffs that were targeting women. This lawsuit was dismissed by a judge, which meant that there would be no proposed action lawsuit.

This comes as the company was hit with multiple lawsuits.

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Reuters