Elon Musk and X Corp have tentatively settled a lawsuit with former Twitter employees claiming $500 million in severance pay. The deal, not disclosed financially, aims to pay fired employees and end litigation over Musk’s firing of 6,000 workers after acquiring Twitter in 2022, now rebranded X. Other lawsuits are pending.

Courtney McMillian and Ronald Cooper filed a proposed class action in California over their terminations and severance pay. A federal judge dismissed the lawsuit in July 2024, leading the employees to appeal to the 9th U.S. Court of Appeals in San Francisco. The 9th Circuit was set to hear oral arguments on September 17.

The lawsuit alleged that Twitter failed to uphold a 2019 severance plan, promising two months of base pay plus one week for each year of service for laid-off workers. Senior employees like McMillian were owed six months of base pay, but many received only one month or nothing. Over half of Twitter’s workforce was laid off post-acquisition.

Read more at Yahoo Finance: Musk, X Corp to settle $500-million lawsuit over Twitter firings