Elon Musk's X Sued By Former Employees Over Severance Pay
X (previously Twitter), the social media giant owned by billionaire Elon Musk, is facing 2,200 arbitration suits from former workers.
According to CNBC report citing court documents, the case is Chris Woodfield v. Twitter, X Corp., and Elon Musk (No. 1:23-cv-780-CFC).
Woodfield, a former senior network engineer at Twitter, was based in the company's Seattle headquarters. He says that the social media behemoth promised and then failed to pay his severance and even delayed alternative dispute resolution by neglecting to pay the JAMS arbitration system fees.
Lawyers for X have argued that because the firm did not push these employees to resolve disputes through arbitration, they should not be required to pay a significant percentage of the filing expenses. Meanwhile, Woodfield and other former employees are attempting to avoid arbitration and take their cases to court, according to CNBC.
Given that JAMS has elected to apply its base fees to the 2,200 arbitrations against X, the filing fees alone would amount to 3.5 million dollars, with further expenses certain to follow.
Former Twitter employees claim that X/Twitter failed to pay the required filing fees for at least 891 arbitration claims after compelling them to agree to arbitrate their problems in return for severance pay.
