After Elon Musk officially took over Twitter, he laid off no less than 3,500 Twitter employees. These former employees are now suing the company in different regions. Although Elon Musk paid some kind of compensation to former staff, some did not accept it. Some former staffers even claim that what Musk is proposing is illegal. Today, Elon Musk got an edge in one of the many court cases he faces. Five fired Twitter staffers have been forced to drop their class action lawsuit against the company. The judge asked them to submit individual claims to arbitration.
On Friday, U.S. District Judge James Donato ruled in favor of Twitter, saying former employees’ employment contracts contained signed arbitration agreements. The agreement clearly states that employees would bring legal disputes against the company through arbitration rather than the courts. It also includes a class action waiver.
“Twitter provided copies of the signed agreements, which were clear and visible,” Donato wrote in the ruling.
Since Elon Musk took over Twitter in late October, the company has laid off thousands of employees. Musk said the former staffer will receive three months of severance pay. The lawsuit says Twitter repeatedly told staff before the acquisition that even under the billionaire’s leadership, employees would still receive at least as much severance as the company had previously promised. This includes a two month payment.
But many laid-off employees didn’t get that much, all they got was a month’s severance pay. The class action accuses Twitter of breaching its contract, saying it should have paid the terminated employees two months of severance pay they had promised, along with the two months of unworked pay they had already received , as Twitter worked to avoid breaching the contract. The WARN law also obliges companies to issue a notice of collective dismissal.
Twitter staff signed important documents
Dispute resolution agreements provided to workers with employment contracts state that disputes, including those related to termination, shall be “resolved only by final and binding arbitration by an arbitrator and not by court or trial.” before a jury”.
“You and the Company agree to initiate arbitration on an individual basis only and not on a class basis or on behalf of a private attorney general,” the agreement adds.
The Dispute Resolution Agreement states that “arbitration is not a mandatory term of employees’ employment with the company” and indicates that employees can sign a separate form to opt out. Donato further said, however, that copies of the dispute settlement agreements from 2017 to 2021 show that those agreements were signed by all five plaintiffs, “without the plaintiffs opting out.”
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The five original plaintiffs, who filed the lawsuit on Nov. 3, “have been referred to individual arbitration,” Donato said. The other three plaintiffs who joined the lawsuit on December 9 said they had not signed an arbitration agreement, Donato said, adding that they were therefore not affected by last Friday’s decision and that he would decide what action to take on their complaints at a later date. .
Twitter owes its suppliers more than $390,000 in claims
A report from Canary Marketing, a marketing firm headquartered in San Francisco, USA, filed a lawsuit on January 6. As part of the lawsuit, the company claims that social media giant, Twitter, breached its contract and failed to pay for the service as required. The company is claiming $392,239.11 and that includes interest. Canary Marketing describes itself in the lawsuit as a multi-party marketing agency. According to the company’s official website, Canary Marketing designs, packages and distributes branded products for clients including Google, Slack, KFC and Sephora.
According to the lawsuit, Canary Marketing provided goods to Twitter from June 2020 to August 2022. The contract states that Twitter will pay for the service within 60 days of receiving the invoice. But invoices issued by Canary Marketing were not processed as of September 2022, according to the lawsuit. At the time of the lawsuit, Twitter had not paid two other bills, the company claims.
“Twitter appears to interpret the agreement as stating that it has the right to decide whether or not to pay Canary Marketing’s invoices,” the lawsuit adds.
Twitter Lawsuits Continue to Rise
Twitter has been hit with numerous lawsuits in recent months for unpaid fees or rent. In fact, the company also faces numerous lawsuits from former employees.
Elon Musk has been on a cost-cutting spree since taking over Twitter’s highest office. The company had to lay off around half of its staff in its first week of work. In the new year, Musk continued to explore ways to cut costs. A wa Musk knows how to cut costs is to lay off staff, so the sacking continued. There are reports that Twitter has a new plan that will see more staff lose their jobs. The company already has plans in place to close many of its smaller offices outside of main offices in California, New York and London.
According to reports, Musk has stopped paying office rent, including the San Francisco headquarters. There’s also a notice from Musk to staff asking them to stop paying certain vendors. According to another report, it is also considering not paying the severance packages promised to the laid-off staff.
In Singapore, Twitter had problems due to his unpaid rent arrears which he has not paid. However, after some uproar, the company ended up paying the overdue rent. Twitter’s other cost-cutting measures include refusing to pay staff for their work and selling off office furniture and kitchen utensils.