Fired Twitter employees can’t file class action lawsuit against Elon Musk for firing them with insufficient notice, ruling rules and must file cases against him individually
- The court rules that five fired Twitter employees must individually sue a social media company
- The company faces claims of discrimination following the $44 billion acquisition by Elon Musk
- District Judge James Donato cited agreements employees signed in his judgment
Twitter employees seeking to sue the company for being fired without notice have been told they cannot file a class action.
In a court ruling on Friday, the social media company, which also faces allegations of gender and disability discrimination, won its bid to force five former employees to file their claims individually.
U.S. District Judge James Donato cited agreements the employees signed with the company, owned by billionaire Elon Musk, in his reasoning for the verdict.
Twitter owner Elon Musk wins bid to force five ex-employees to file their claims individually rather than as a class action
Twitter was in hot water in early November after it laid off about 3,700 employees as part of a cost-cutting measure.
Hundreds of others subsequently resigned.
In December, the company was also accused by dozens of former employees of various legal violations stemming from Musk’s $44 billion takeover of the company.
These include targeting women for layoffs and failure to pay promised severance payments.
Shannon Liss-Riordan, representing the plaintiffs, said Monday she had already filed 300 claims for arbitration on behalf of former Twitter employees.
She added that she would likely submit hundreds more.
Musk, 51, bought Twitter in October 2022 for $44 billion and immediately installed himself as CEO
Twitter is also facing at least three complaints filed with a U.S. labor board alleging employees were fired for criticizing the company, attempting to stage a strike, and other conduct protected by federal labor law.
The company did not respond to a request for comment.
Last year, San Francisco judge Donato ruled that Twitter must inform the thousands of employees laid off following the Musk acquisition following a proposed class action accusing the company of failing to give notice before terminating them.
Twitter is headquartered in San Francisco, California
He said that before Twitter asks employees to sign severance agreements waiving their ability to sue the company, Twitter must give them a concise and clearly worded notice.
Last week it was revealed that Elon Musk had broken the world record for amassing the largest losses in his personal fortune in history.
According to the Guinness World Records, the entrepreneur wiped $165 billion from his wealth between November 2021 and December 2022.
Share value in Tesla, Musk’s electric car company, plunged about 65 percent after he bought Twitter last year, a move that spooked investors.
US District Judge James Donato cited agreements the employees signed with the company, owned by billionaire Elon Musk, in his reasoning for the verdict