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Investing.com -- Elon Musk and his X Corp have reached a tentative agreement to settle a lawsuit from former Twitter employees who claimed they were owed $500 million in severance pay.
The deal was disclosed in a Wednesday court filing, where attorneys for both X Corp and the former employees requested that the U.S. appeals court delay an upcoming hearing to allow time to finalize the settlement. The financial terms of the agreement were not revealed in the filing.
The settlement would resolve a proposed class action lawsuit filed in California by Courtney McMillian, who previously served as Twitter’s "head of total rewards" overseeing employee benefits programs, and Ronald Cooper, a former operations manager.
Musk terminated approximately 6,000 employees following his acquisition of Twitter in 2022, after which he rebranded the platform as X. The settlement comes after a federal judge in San Francisco dismissed the employees’ lawsuit in July, prompting them to appeal to the San Francisco-based 9th U.S. Court of Appeals.
The 9th Circuit had scheduled oral arguments for September 17, which will now be postponed as the parties work to finalize the agreement.
Despite this tentative settlement, other lawsuits related to terminations and severance pay following Musk’s Twitter acquisition remain pending in courts in Delaware and California.