Elon Musk Successfully Defends Against $500m Severance Lawsuit Amid Twitter Layoffs

Money | July 10, 2024, 12:55 p.m.

A US court dismissed a lawsuit alleging Elon Musk didn't pay $500m in severance to Twitter employees post-acquisition. Judge ruled the Employee Retirement Income Security Act didn't cover claims, benefiting Musk. He faces more lawsuits over business practices at X, Tesla, and SpaceX, including gender discrimination and retaliatory firings. Musk allegedly failed to provide proper severance to Twitter employees and vendors after the $44bn acquisition, sparking legal battles. Plaintiffs claimed Musk promised a more generous severance package but only provided cash payments. The judge stated Erisa didn't apply since Twitter lacked an administrative scheme for claims review. Musk's lawyers didn't comment. In another legal battle, lawyers are seeking $7bn in fees over Musk's contested Tesla CEO pay package. This victory adds to Musk's legal challenges as a prominent figure in the business world.