Elon Musk’s X Corp is settling a lawsuit for $ 500 million with former employees

Elon Musk The social media company X Corp reached a preliminary agreement to settle a lawsuit filed by former employees of the company, which was then known as Twitter, who have argued that they owed $ 500 million in Severance wages.

Both sides revealed the deal on Wednesday in the court file, as both of them asked the American Court of Appeal to delay a upcoming hearing to allow them to end the deal to pay the entered out of the workers and close the case. On Thursday, the Court of Appeal in the American Chamber approved the postponement of the session.

San Francisco court was to hear oral arguments on September 17.

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The financial conditions of the agreement have not been revealed. The settlement will be proposed Collective lawsuit Former employees, Courtney McMeelian and Ronald Cooper, presented it.

A federal judge refused the staff lawsuit last year, but they resumed the ninth district.

Nearly 6000 employees were completed after the acquisition of Musk in 2022 from the social media giant, which was later It was renamed to xAs part of the cost reduction scale.

Many former employees filed a lawsuit against the company for shooting and paying.

The lawsuit filed by McMillian and Cooper said that the end of 2019 plan included that most of the workers will receive two months of their basic salaries in addition to one week of wage for each full year of service if they are terminated.

Al -Shakawi said that senior employees such as McMillian, who supervised the company’s employee benefits, were worth six months of the basic wage.

However, the company only provided divorced workers for one month of seasons at most, and many of them did not receive anything, as the lawsuit says.

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Other lawsuits, including the introduction submitted by executive officials, such as former CEO Parage Agrouwal, are still hanging in court.

Musk’s efforts to reduce the workforce of the company came before leading similar measures to reduce costs in the time in the management of government efficiency in the Trump administration, or Dog, which reduced tens of thousands of government employees earlier this year as it tried to reduce the size of the federal workforce.

Reuters contributed to this report.