Twitter Inc. is facing another legal challenge as a former senior engineer, Chris Woodfield, files a proposed class action lawsuit in Delaware federal court, claiming the social media giant owes at least $500 million in severance pay to ex-workers. The lawsuit also alleges that the company engaged in age discrimination by targeting older employees for layoffs—a new claim not previously seen in other pending cases.
Cost-cutting Measures Following Musk’s Acquisition
The lawsuit stems from Twitter’s decision to downsize its workforce by over 50% after Elon Musk’s acquisition of the company in October of the previous year. As part of the cost-cutting measures, numerous employees were laid off, with the promise of two months’ salary and other payouts upon their dismissal.
Unfulfilled Promises and Refusal to Pay Arbitration Fees
Woodfield, based in Seattle, and other former Twitter employees claim that despite assurances of severance pay, they have not received the promised compensation. Woodfield’s suit accuses Twitter of breach of contract and fraud for failing to fulfill these agreements.
Moreover, the lawsuit highlights the existence of an arbitration agreement signed by Woodfield, requiring Twitter to cover the initial fees to proceed with individual cases. Woodfield initiated an arbitration process against Twitter earlier in the year, but the company has allegedly refused to pay the required fees, effectively stalling the proceedings. This echoes a similar claim made by hundreds of ex-employees in a separate case.
Age Discrimination Allegations
Adding complexity to the case, Woodfield’s lawsuit also asserts that Twitter specifically targeted older workers for layoffs. Although the complaint does not disclose Woodfield’s age, the claim raises concerns about potential age bias during the layoff process.
Similar Lawsuit in California
Just last week, another lawsuit was filed in a California federal court, further claiming that Twitter owes ex-employees over $500 million in severance pay. This case centers on a federal law governing employee benefit plans, alleging that Twitter failed to adhere to the terms of an established severance plan before Musk’s acquisition of the company.
Twitter’s Response and Ongoing Legal Challenges
Twitter’s response to the mounting lawsuits has been peculiar, with the company no longer maintaining a media relations department and offering an automated response containing a poop emoji to inquiries. In previous responses to legal claims, Twitter asserted that laid-off workers had received their full compensation.
Beyond the severance pay disputes, Twitter has been involved in several other lawsuits, accused of disproportionately laying off women and workers with disabilities, neglecting to provide adequate notice of layoffs, and reneging on promised bonuses for remaining employees. The company denies these allegations.
As the legal battles over layoffs continue to plague Twitter, the company finds itself embroiled in a series of contentious disputes, with ex-employees seeking compensation and alleging various forms of discrimination. The outcome of these lawsuits will not only impact the company’s financial standing but also raise important questions about fair labor practices and employee rights in the tech industry.
