Musk wins favorable court ruling against Twitter: What it means for the company's laid-off workers
After becoming the first human in history to lose $200 billion, Elon Musk received good news this week with a favorable court ruling involving his social media company.< /p>
What happened: A judge ruled that a group of fired Twitter employees suing the company over their severance pay, should pursue their claims individually rather than in a class action lawsuit, according to a Bloomberg report.
About 500 of the roughly 3,700 Twitter employees Musk has fired since he took over the company last year have already filed individual arbitration claims, according to Shannon Liss-Riordan, the lawyer who filed these demands on behalf of the workers.
U.S. District Judge James Donato ruled on Friday that five employees who filed a lawsuit in early November must abide by the terms of their contracts and submit to arbitration, according to Bloomberg.
The federal judge in San Francisco said he will make a decision later on how to handle complaints from employees who choose not to participate in arbitration.
Why it matters: The court ruling comes at a critical time for the microblogging platform. Twitter is grappling with numerous lawsuits stemming from Musk's purchase of the company, including targeting women for layoffs and failing to pay promised severance pay, according to Reuters.
In addition, Twitter is grappling with at least three complaints filed with a US labor board alleging employees were fired for engaging in protected activities such as criticizing the company, attempting to organize a strike and other actions covered by federal labor law, reports Reuters.
Read next: Elon Musk cries 'constitutional violation' over Facebook's alleged censorship of 'often true' COVID-vaccine content 19< /p>
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
After becoming the first human in history to lose $200 billion, Elon Musk received good news this week with a favorable court ruling involving his social media company.< /p>
What happened: A judge ruled that a group of fired Twitter employees suing the company over their severance pay, should pursue their claims individually rather than in a class action lawsuit, according to a Bloomberg report.
About 500 of the roughly 3,700 Twitter employees Musk has fired since he took over the company last year have already filed individual arbitration claims, according to Shannon Liss-Riordan, the lawyer who filed these demands on behalf of the workers.
U.S. District Judge James Donato ruled on Friday that five employees who filed a lawsuit in early November must abide by the terms of their contracts and submit to arbitration, according to Bloomberg.
The federal judge in San Francisco said he will make a decision later on how to handle complaints from employees who choose not to participate in arbitration.
Why it matters: The court ruling comes at a critical time for the microblogging platform. Twitter is grappling with numerous lawsuits stemming from Musk's purchase of the company, including targeting women for layoffs and failing to pay promised severance pay, according to Reuters.
In addition, Twitter is grappling with at least three complaints filed with a US labor board alleging employees were fired for engaging in protected activities such as criticizing the company, attempting to organize a strike and other actions covered by federal labor law, reports Reuters.
Read next: Elon Musk cries 'constitutional violation' over Facebook's alleged censorship of 'often true' COVID-vaccine content 19< /p>
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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