[1/2] Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022.
July 12 (Reuters) - Twitter Inc on Wednesday was hit with a lawsuit accusing it of refusing to pay at least $500 million in promised severance to thousands of employees who were laid off after Elon Musk acquired the company.
But Twitter only gave laid-off workers at most one month of severance pay, and many of them did not receive anything, McMillian claims.
Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company in October.
The lawsuit accuses Twitter and Musk of violating a federal law regulating employee benefit plans.
Twitter has already been sued for allegedly failing to pay severance, but those cases involve breach of contract claims and not the benefits law.
A pending lawsuit filed last month accuses Twitter of also failing to pay millions of dollars in bonuses it owes to remaining employees. »