ISLAMABAD: Twitter Inc faced its second lawsuit this month, asserting that the company is liable for providing severance pay amounting to at least $500 million to former employees. This legal action is the most recent in a string of lawsuits stemming from Elon Musk’s acquisition of the social media company.
Former Twitter senior engineer Chris Woodfield filed a proposed class action in Delaware federal court. The lawsuit alleges that the company deliberately focused on laying off older employees, a claim does not present in other pending cases.
Woodfield, who was based in Seattle during his tenure at Twitter, asserts that the company consistently informed its employees about receiving two months’ salary and other benefits if they were to be laid off. However, he and other workers claim that they have not yet received these payments.
After Musk’s acquisition of Twitter last October, the company implemented a cost-cutting strategy that led to over half of its workforce being laid off.
Notably, Twitter has eliminated its media relations department, and when contacted for comment via email, the company responded with an automated reply featuring a poop emoji. In previous legal cases, Twitter has maintained that the laid-off employees were compensated in full.
Furthermore, a comparable lawsuit was recently filed in California federal court, asserting that Twitter owes former employees over $500 million in severance pay.
As of now, Twitter has not responded to the mentioned lawsuit. The lawsuit claims that Twitter violated a federal law regulating employee benefit plans. This violation occurred by failing to comply with the terms of a severance plan that was established before Musk acquired the company.
Woodfield’s lawsuit includes two main accusations against Twitter. The first one is breach of contract, while the second is fraud. Woodfield further alleges that he was targeted for layoff because he is an “older worker.” However, his exact age is not specified in the complaint.
The lawsuit states that Woodfield had signed an agreement requiring arbitration for work-related legal disputes. According to this agreement, Twitter is responsible for paying the initial fees to enable individual cases to proceed. Earlier this year, Woodfield initiated arbitration against Twitter.
However, Woodfield claims Twitter blocked his case by refusing to pay the required fee, echoing similar allegations from other ex-employees. Twitter’s response was that those workers had not submitted the necessary paperwork.
In addition to the mentioned accusations, Twitter has faced several other lawsuits. These cases accuse the company of disproportionately laying off women and employees with disabilities, not providing sufficient notice before layoffs, and unfulfilled bonuses to its remaining employees. Twitter has consistently denied these claims.
