A US court dismissed a lawsuit claiming Elon Musk refused to pay $500 million in severance to thousands of Twitter employees fired after his acquisition of the company, now known as X.
US District Judge Trina Thompson ruled that the Employee Retirement Income Security Act (ERISA) did not cover the claims, thus she lacked jurisdiction.
This marks a legal win for Musk, who still faces multiple lawsuits over his business practices at X, Tesla, and SpaceX.
The lawsuit alleged Musk failed to provide appropriate severance, offering only one month of pay instead of a more generous 2019 plan.
Thompson noted that ERISA did not apply because Twitter's post-buyout plan lacked an "ongoing administrative scheme" or additional benefits. She allowed the plaintiffs to amend their complaint for non-ERISA claims.