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Twitter's laid-off workers cannot pursue claims via class-action lawsuit-judge

Published 01/14/2023, 04:29 AM
Updated 01/14/2023, 01:50 PM
© Reuters. FILE PHOTO: The Twitter logo is seen outside the offices in New York City, U.S., November 9, 2022. REUTERS/Brendan McDermid//File Photo

(Reuters) -Twitter Inc has secured a ruling allowing the social media company to force several laid-off workers suing over their termination to pursue their claims via individual arbitration than a class-action lawsuit.

U.S. District Judge James Donato on Friday ruled that five former Twitter employees pursuing a proposed class action accusing the company of failing to give adequate notice before laying them off after its acquisition by Elon Musk must pursue their claims in private arbitration.

Donato granted Twitter's request to force the five ex-employees to pursue their claims individually, citing agreements they signed with the company.

Twitter did not immediately respond to a request for comment.

The San Francisco judge left for another day "as warranted by developments in the case" whether the entire class action lawsuit must be dismissed, though, as he noted three other former Twitter employees who alleged they had opted out of the company's arbitration agreement have joined the lawsuit after it was first filed.

The lawyer who represents the plaintiffs, Shannon Liss-Riordan, said on Monday that she had already filed 300 demands for arbitration on behalf of former Twitter employees and would likely file hundreds more.

Those workers all claim they have not received the full severance package promised by Twitter before Musk took over. Some have also alleged sex or disability discrimination.

Last year, Donato had ruled that Twitter must notify the thousands of workers who were laid off after its acquisition by Musk following a proposed class action accusing the company of failing to give adequate notice before terminating them.

The judge said that before asking workers to sign severance agreements waiving their ability to sue the company, Twitter must give them "a succinct and plainly worded notice".

Twitter laid off roughly 3,700 employees in early November in a cost-cutting measure by Musk, and hundreds more subsequently resigned.

© Reuters. FILE PHOTO: The Twitter logo is seen outside the offices in New York City, U.S., November 9, 2022. REUTERS/Brendan McDermid//File Photo

In December last year, Twitter was also accused by dozens of former employees of various legal violations stemming from Musk's takeover of the company, including targeting women for layoffs and failing to pay promised severance.

Twitter is also facing at least three complaints filed with a U.S. labor board claiming workers were fired for criticizing the company, attempting to organize a strike, and other conduct protected by federal labor law.

Latest comments

so the erratic narcissist has no problem abusing his loyal workers, what a lowlife of a boss!
It is a common knowledge for any informed employee: if you accept severance, then you cannot sue. Simple as it is. Of course, ignorant Dems want to have both.
And if you had common knowledge, you would know that.
@Warm Camp. You are wrong.
 Another ignorant shout.
this loser could waste and lose hundreds of millions on bitcoin! waste billions on the defunct twitter, yet denies his handpicked workers severance or layoff notices! he is a bad human being!
Musk is a hero. The pathetic little Fascists he fired should root in Hell.
Call roto rooter?
I had a feeling the erratic narcissist targets women because he hates them! that's why he won't marry any of his babies mamas!
I wouldn't give them a penny for a gross violation of human rights, unfortunately twitter continues to be a censorship so it doesn't matter if they eat each other.
This judge has it wrong narrowing his analysis to arbitration agreements. These agreements, which were signed in good faith prior to Musk's acquisition of Twitter, were effectively voided when Musk arbitrarily terminated employees without notice and targeted a large number of employees without basis to individual merit.
What your legal basis for voiding the agreements? Was there a "change of control" clause causing termination?
Change of control clause is a good question. If there is a COC, and there probably is, Musk's attorneys will use arbitration as an effort to stymie provisions within the COC that are to the benefit of the terminated employees. Such as severance and required length of retention in the event of change of ownership. While then Musk has terminated employees without regard to contracts, legal maneuvering burdens the plaintiffs to adhere to contracts that Musk's legal team is seeking to void as binding.
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