Musk Gets Favorable Court Ruling In Suit Against Twitter: What It Means For Company's Laid-Off Workers


After being the first human in history to lose $200 billion, Elon Musk received some good news this week with a favorable court ruling involving his social media company.

What Happened: A judge ruled that a group of laid-off Twitter employees suing the business over their severance compensation, have to pursue their claims individually rather than as part of a class action, according to a Bloomberg report.

About 500 of the roughly 3,700 Twitter employees Musk laid off since taking control of the company last year have already filed individual arbitration claims, according to Shannon Liss-Riordan, the lawyer who filed those claims on the workers’ behalf.

U.S. District Judge James Donato ruled on Friday that five employees who filed a lawsuit in early November must follow the terms of their contracts and submit to arbitration, according to Bloomberg.

The San Francisco federal judge said that 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 contending with numerous legal disputes resulting from Musk’s purchase of the company, including targeting women for layoffs and neglecting to pay promised severance, according to Reuters.

Additionally, Twitter is grappling with at least three complaints made to a U.S. labor board alleging that employees were fired for engaging in protected activity like criticizing the business, trying to organize a strike, and other actions covered by federal labor law, Reuters reports.

Read next: Elon Musk Cries ‘Constitutional Violation’ Over Facebook’s Alleged Censorship Of ‘Often-True’ COVID-19 Vaccine Content


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