Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Twitter says lawsuit over layoffs lacks merit and has delayed severance pay

Published 11/22/2022, 09:54 AM
Updated 11/22/2022, 11:26 AM
© Reuters. FILE PHOTO: A view of the Twitter logo at its corporate headquarters in San Francisco, California, U.S. November 18, 2022. REUTERS/Carlos Barria/File Photo

By Daniel Wiessner

(Reuters) - Twitter Inc (NYSE:TWTR) has told a federal judge in San Francisco that a lawsuit claiming the company violated U.S. law by laying off thousands of workers without notice is baseless, and moved to send the claims to arbitration.

The court filings made late Monday mark Twitter's first response to the proposed class action, which was brought earlier this month under a federal law requiring 60 days' notice before engaging in mass layoffs.

Twitter has laid off about 3,700 employees - half of its workforce - and hundreds more have resigned since the company was acquired last month by Elon Musk, the world's richest person.

On Monday, Twitter said it had met its legal obligations by telling workers who were laid off that their last day would be Jan. 4, or more than 60 days later.

The company said a pending motion by the plaintiffs to force Twitter to notify laid-off workers of the lawsuit before asking them to sign severance agreements had only caused confusion and delayed severance payments, and asked a judge to reject it.

Twitter in a separate filing said the plaintiffs had signed agreements to arbitrate employment-related disputes and moved to send the claims to individual arbitration.

Arbitration allows companies to avoid expensive class action lawsuits, and business groups say it is cheaper and more efficient than going to court.

Shannon Liss-Riordan, a lawyer for the plaintiffs, on Tuesday said she is prepared to represent workers in arbitration if the case is pushed out of court.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"Twitter’s response to our motion is basically that the employees are bound by arbitration agreements, so Twitter doesn’t have to worry about violating the law. Twitter is incorrect," she said.

The company is facing two other proposed class actions in the same court claiming it failed to give contract workers advance notice before they were laid off and discriminated against disabled workers by barring them from working remotely after Musk took over.

Twitter has not responded to those lawsuits.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.