US District Judge Trina Thompson in San Francisco ruled that the federal Employee Retirement Income Security Act (ERISA), which governs benefit plans, did not cover the claims made by the former employees. As a result, the court lacked jurisdiction over the case.

This dismissal adds to the list of ongoing legal battles faced by Musk, including lawsuits related to his business practices at companies like X, Tesla, and SpaceX. These cases involve a range of allegations, ranging from gender discrimination and defamation to retaliatory firings.

The lawsuit in question was one of many accusing Musk of breaking promises made to former Twitter employees and vendors after his $44 billion acquisition of the company in October 2022. The plaintiffs, including Twitter's CEO Parag Agrawal, claimed that Musk failed to provide the generous severance package entitled to them under a 2019 severance plan, offering only one month's pay without benefits.

Judge Thompson determined that ERISA did not apply to Twitter's post-buyout plan as there was no ongoing administrative scheme in place to review claims on a case-by-case basis or provide benefits such as continued health insurance and outplacement services.

While the case has been dismissed, the plaintiffs have the option to amend their complaint for claims not governed by ERISA.

Elon Musk's lawyers did not immediately respond to requests for comment, and the lawyers representing the plaintiffs have not issued a statement following the court's ruling.

In addition to this legal victory, Musk's lawyers were also involved in another ongoing legal battle this week, regarding his contested multibillion-dollar pay package as CEO of Tesla. A judge will determine whether the law firm that successfully argued for the court to invalidate Musk's payment should be awarded a record-breaking $7 billion in legal fees.

Despite this dismissal, lawsuits continue to mount against Musk, highlighting the challenges he faces in the legal arena. It remains to be seen how the outcomes of these cases will affect his reputation and business ventures moving forward.