In recent development, tech giant Elon Musk and his company, X is piled with suitcases from former employees of Twitter.
Recently, the former Twitter’s CEO Parag Agrawal along with former CFO Ned Segal, former Chief Legal officer Vijaya Gadde and former General Counsel Sean Edgett, has filed another suitcase, regarding the unpaid severance packages totaling over $128 million.
The suitcase alleged over the unethical firing of the above mentioned employees. The employees claim that they were fired without any cause on the day of Musk’s acquisition of Twitter. They claim that the company used ‘made-up’ reasons to terminate them and avoid paying them the severance package they were entitled to as per their contracts.
This lawsuit seeks a compensation of $128 million from the X, which is the full amount of the severance package that the company owed to these employees. Additionally, the executives are asking for additional compensation for exemplary damages.
“We are confident in the merits of our case and believe the evidence will show that X acted unlawfully in denying us our contractual severance rights,” said a spokesperson of the former employees.
This suitcase has further burdened the pile of suitcases Elon Musk is facing from Twitter’s former employees regarding their wrongful termination due to which their severance pay was denied.
These lawsuits accuse Musk of wrongful termination of employees and appointment of other employees from various companies to uphold the decision.
In response to these lawsuits X has issued a statement in which they have denied all the acquisitions
“The company refutes all allegations made by the former executives,” the statement reads. “We believe we acted fairly and lawfully regarding their termination and will vigorously contest these claims in court.”
Since Elon Musk acquired Twitter, numerous employees have been laid off, including non-payment of vendors providing their services in different locations for Twitter’s employees, which has given birth to a wave of lawsuits, accusing the company of unfair labor practices.
Many former employees have filed lawsuits against X in the past few months regarding the denial of a promised severance package during the lay off, which is in direct violation of their contracts. These suitcases have highlighted the legal battle between X and its former employees and the outcome of these cases will impact the future decisions in reference to the similar cases.
Recent case have raised the stakes in the ongoing battle and if the executives win their case then it will pave the path for other employees to challenge their wrongful termination and claim their own severance package. Which will surely add burden on the shoulders of X and probably will make the company rethink about the layoffs.
However, if X prevails, then it can cause a ripple effect making other organisations to rethink their hiring policies which will boast this kind of behaviour.
The legal battle between the employees and X, is likely to take the form of a long debate amongst their representatives. The result of these legal arguments will potentially set an example for the hiring policies in the future
