A former Twitter employee has filed a lawsuit against the company. The lawsuit alleges that Twitter owes at least $500 million in severance pay to thousands of employees. These employees were laid off after Elon Musk acquired the company.
The lawsuit was filed by Courtney McMillian. She oversaw Twitter’s employee benefits programs. According to the lawsuit, Twitter violated its severance plan. The company only paid laid-off workers at most one month of severance pay. McMillian claims that she and other senior employees were owed six months of base pay but only received one month.
The lawsuit seeks class-action status. It represents all Twitter employees who were laid off after Musk acquired the company. Additionally, it demands at least $500 million in damages.
As of now, Twitter has not responded to the lawsuit.
This lawsuit is the latest legal challenge faced by Musk since his acquisition of Twitter. In May, a group of Twitter shareholders sued Musk. They alleged that he made false and misleading statements about the company to manipulate its stock price.
Musk has denied the allegations, and the case is still pending.
The lawsuit filed by McMillian is the first to claim that Twitter violated its severance plan. Its success is yet to be determined. However, it highlights the legal challenges associated with Musk’s acquisition of Twitter.
