Elon Musk’s X is reportedly getting sued by former employees. Here’s why

Elon Musk’s X is reportedly getting sued by former employees. Here’s why

Tech News

Social media giant X (formerly Twitter), led by billionaire Elon Musk, is facing 2,200 arbitration claims from former employees of the company.

According to a CNBC report citing court records, the case is Chris Woodfield v. Twitter, X Corp. and Elon Musk (No. 1:23-cv-780-CFC).

Woodfield, a former senior network engineer at Twitter, worked out of the company’s Seattle office. He claims the social media giant promised and then failed to pay his severance, and even delayed alternative dispute resolution by failing to pay the fees required for the JAMS arbitration system.

Lawyers for X have argued that the company didn’t require these employees to resolve issues through arbitration, and therefore shouldn’t be forced to pay a large portion of the filing fees. Meanwhile, Woodfield and other former employees are trying to get out of arbitration and take their cases to court, CNBC reported.

According to the JAMS website, the filing fee for two-party matters is $2,000, while for matters based on a clause or agreement that is a condition of employment, employees are only required to pay $400.

Given that JAMS has decided to apply its base fees to the 2,200 arbitrations against X, this would mean a whopping $3.5 million in filing fees alone, with other fees likely to follow.

The report noted that similar to the Woodfield case, X Corp is being sued with a class action filed in a San Francisco federal court, the case is Ma v. Twitter, in the Northern District of California (No. 3:23-cv-3301).

Former Twitter employees allege that X/Twitter delayed at least 891 arbitration cases by failing to pay the required filing fees after forcing them to agree to arbitrate their disputes in exchange for severance pay.

More recently, the US Department of Justice sued another Elon Musk-led company, SpaceX, for alleged hiring discrimination against refugees and people seeking or who have been granted asylum.

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Updated: 01 Sep 2023, 07:46 AM IST

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