Court: No Class Action Lawsuit Permissible Over Twitter Layoffs
On Friday, US District Judge James Donato issued a verdict that several former Twitter employees that wanted to file a class action lawsuit against the social media company cannot do so, CNBC reported. The company is thereby forcing the former employees to pursue their claims via individual arbitration.
They are suing Twitter because the company allegedly failed to give them adequate notice before making them redundant. This followed the company’s acquisition by Elon Musk.
The judge approved Twitter’s request to make five ex-employees file individual claims based on agreements they signed with the company.
300 demands for arbitration, hundreds more expected
The class action lawsuit might not be dismissed in its entirety. The judge pointed out that another three former Twitter employees, who claimed they had opted out of the company’s arbitration agreement, subsequently joined the lawsuit.
Attorney Shannon Liss-Riordan, who represents the plaintiffs, said she had filed 300 arbitration demands on behalf of former Twitter staff and expected to file hundreds more.
Ex-staff alleges sex, disability discrimination
Some former staff have claimed sex or disability discrimination. They all say they didn’t get the full severance package the social media company promised prior to Musk’s takeover.
In December, dozens of former employees accused Twitter of certain legal violations due to Musk’s takeover, such as not paying severance as promised and targeting women for layoffs.
Former employees also filed complaints with a US labor board, claiming they were fired for trying to organize a strike, criticizing the company, and for other actions that are legal under federal labor law.
Court punishes lack of notice of termination
Last year, the same judge ruled the company had to inform the thousands of employees who were laid off after Musk acquired it. They had proposed a class action lawsuit accusing Twitter of failing to give them timely notice of termination.
According to the judge, Twitter had to give employees a clear, plainly worded notice before asking them to sign severance agreements, according to which they may not sue the company.
The great layoff
In November last year, Musk decided to lay off around 3,700 employees as a cost-reduction measure. After that, hundreds more resigned.