Russell Morgan Explains How Arbitration Rulings May Influence Future Settlements
A former Twitter employee has won a significant legal battle over unpaid severance, a decision that could lead to many more claims against the social media giant, now called X. The case was handled through arbitration, and the ruling has the potential to influence other former employees who were laid off following Elon Musk’s tumultuous $44 billion takeover in 2022.
A Key Arbitration Ruling
The ex-Twitter employee, represented by attorney Shannon Liss-Riordan, secured the full severance package after being laid off during Musk’s aggressive restructuring. The arbitration ruling marks the first of its kind, and experts suggest it could open the door for similar outcomes in the future.
According to the memo obtained by Bloomberg, 15 other pending cases have undergone arbitration hearings, and more rulings are expected in the months ahead. This decision could inspire former Twitter employees to pursue legal action if they believe their severance agreements were mishandled during the transition to X.
Potential Ripple Effect on Future Cases
Russell Morgan, principal and founder of Morgan Legal Group, explained to Business Insider that while arbitration rulings are not legally binding precedents, they could still “move the dial” in similar cases. “This could set a precedent for all the other employees claiming they are still owed money and pressure the social media company to settle,” Morgan said.
The arbitration ruling might also encourage Elon Musk and X to consider settling disputes with other laid-off workers rather than engage in protracted legal battles that could harm the company’s reputation.
100 Former Workers Pursuing Legal Action
Musk and X are currently facing a lawsuit from over 100 former Twitter employees who were dismissed in 2022. Attorney Lisa Bloom, who represents this group, applauded the arbitrator’s decision, stating that Musk should “do the right thing now and pay the workers what they were promised.”
Bloom’s clients have individual arbitration hearings scheduled to begin in December 2024 and continue through August 2025. Despite a federal judge recently dismissing a $500 million severance pay lawsuit, Musk and his company’s legal battles are far from over.
What This Means for X and Its Former Employees
Legal experts believe this victory could pave the way for more former Twitter employees to pursue their cases, especially those affected by the company’s rapid restructuring. With many more arbitration cases pending, the company may face pressure to settle or risk further reputational and financial consequences.
Russell Morgan emphasized the importance of companies taking these cases seriously and considering settlements to avoid escalating legal costs and damage to their public image. “As these cases proceed, the question remains whether X will choose to settle or continue to fight each case individually,” he added.
Read the original article on Business Insider.
