Home Tech Elon Musk Faces Allegations of $500 Million Twitter Severance Debt

Elon Musk Faces Allegations of $500 Million Twitter Severance Debt


Former Twitter HR Head Alleges $500 Million Unpaid Severance; Elon Musk Accused in Lawsuit.
A class-action lawsuit has been filed against Twitter by Courtney McMillian, the former “head of total rewards” at the company’s human resources department, claiming that approximately $500 million in severance pay is owed to former employees.
The lawsuit alleges that Twitter owner Elon Musk was aware of the severance plan before terminating thousands of staff members but was hesitant due to the associated costs.
This lawsuit is one among several legal actions initiated against Twitter following Musk’s acquisition of the company for $44 billion last year, which resulted in the layoffs of around 6,000 employees. According to the complaint filed in a federal court in San Francisco, Twitter’s severance plan entitled employees to a minimum of two months’ base salary, as well as health insurance benefits and other allowances.
However, the lawsuit asserts that the employees received a maximum of three months’ pay, including one month of severance and two months’ worth of payment required by US law for notice of termination. The complaint alleges that this amount is a fraction of what the employees were entitled to receive. Twitter, which no longer maintains a public relations department, declined to comment on the matter. In November, Musk stated that employees would receive three months’ worth of pay, which was 50% more than the legal requirement.
The lawsuit accuses Musk of misleading employees about the company’s commitment to the severance plan, leading some employees to remain with the company for a longer duration than they otherwise would have.
Kate Mueting, the attorney representing McMillian from Sanford Heisler Sharp, stated that Musk made these assurances knowing they were necessary to prevent mass resignations that could have jeopardized the merger and Twitter itself.

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