Musk faces $3.5M arbitration fees for Twitter layoffs

Share post:

Elon Musk is facing $3.5 million in arbitration fees after Twitter laid off thousands of employees shortly after he acquired the company.

The layoffs resulted in a number of former employees filing arbitration cases against Twitter, seeking to get their promised severance pay. The cases are being handled by JAMS, an arbitration service that charges $2,000 per two-party case. Former employees are only on the hook for $400 of that fee, but Twitter has refused to pay the remaining $1,600.

This has led to multiple lawsuits from former employees, who are arguing that Twitter is violating their contracts by refusing to pay the filing fees. Twitter has argued that it did not require former employees to move their cases to arbitration, but a judge has ruled that the company is still obligated to pay the fees.

Twitter has also been sued by the Center for Countering Digital Hate, a disinformation research organization, and by the law firm that represented the prior Twitter administration. It also dealt with unpaid bills from landlords and software vendors in the past 10 months.

The sources for this piece include an article in Mashable.

Featured Tech Jobs


Related articles

Authors sue OpenAI for copyright infringement

A group of authors has filed a class-action lawsuit against OpenAI, alleging copyright infringement. The authors, including Pulitzer...

SpaceX sues U.S. government over hiring discrimination case

SpaceX has sued the U.S. government, challenging the Department of Justice's (DOJ) authority to hear an administrative case...

FTX founder’s parents sued for misappropriating millions

The parents of FTX founder Sam Bankman-Fried are being sued for millions of dollars they allegedly received improperly...

U.S. Justice Department objects to Google advertising price secrecy

The U.S. Justice Department is objecting to removing the public from the court during some discussions of how...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways