In a recent development, a US judge has dismissed a case filed by former Twitter staff members accusing billionaire Elon Musk of unlawfully denying approximately $500 million in severance payments owed to employees who were fired after his takeover of the company. The ruling by Judge Trina Thompson states that the employees failed to prove that their claims were protected by federal law.

Elon Musk's acquisition of Twitter in 2022 brought about numerous changes, including the termination of thousands of employees. These actions led to multiple lawsuits from former staff and vendors, who alleged that the company had withheld promised payments. One such complaint was filed in 2023 in a federal court in San Francisco by Courtney McMillian, the former "head of total rewards" at Twitter, which Musk had renamed as X.

The complaint filed by McMillian stated that the company had paid employees only one month's worth of severance instead of the generous benefits that had been promised, including at least two months of salary and contributions towards health insurance.

In response, Musk's legal team argued that the employees' claims were not protected under the Employee Retirement Income Security Act, and urged the judge to dismiss the complaint. Judge Thompson ultimately ruled in Musk's favor, potentially setting a precedent for similar cases against the company.

"We are disappointed in the ruling and considering our options for moving forward," said a spokesperson for McMillian's team. It is worth noting that other cases, including one brought by former leaders of Twitter, are still ongoing in the courts.

Although the dismissed lawsuit is a victory for Musk, Judge Thompson acknowledged the potential for other workers to seek recourse in separate cases against Twitter. She pointed out that these workers may have alternative opportunities to prove their claims regarding unpaid wages and employee severance benefits during the relevant period.

As the legal battles surrounding the aftermath of Elon Musk's takeover of Twitter continue, it remains to be seen how future cases will unfold and whether they will have different outcomes.