Ex-Twitter workers covered by the $500 million severance case have a tentative settlement but no payout yet. The deal still needs final paperwork and court approval before any claims process can begin. A severance class action is a lawsuit brought for a group of former employees seeking the same unpaid exit benefits. This case was filed by ex-Twitter staffers Courtney McMillian and Ronald Cooper for about 6,000 workers cut after Elon Musk acquired Twitter in 2022.
Official resources:
- Read the original report from Bloomberglaw — Use this primary source to review the complete report.
- Read the original report from Srnnews — Use this primary source to review the complete report.
Table of Contents
- Who is covered by the case?
- What severance amount is at stake?
- Where does the settlement stand?
- What should affected workers do now?
- Is this the same as the executives' lawsuit?
Who is covered by the case?
The proposed class covers about 6,000 employees terminated after Musk acquired Twitter and later rebranded it X. Bloomberg Law described the group as rank-and-file workers alleging denial of benefits under Twitter's severance plan in its report on the proposed settlement.
McMillian and Cooper sued as representatives of that larger workforce. They sought $500 million in unpaid severance for the group. The court has not yet issued a final approved class definition tied to a payout.
What severance amount is at stake?
Plaintiffs point to Twitter's 2019 severance plan as the promise owed to most workers. They allege it offered two months of base pay plus one week of pay for each year of service.
Senior employees could receive more under that formula. Bloomberg Law reported payments could reach six months of compensation for senior staff in its coverage of the severance terms. The lawsuit alleges workers received far less after the takeover.
Where does the settlement stand?
X Corp. and Musk reported the tentative settlement on Aug. 20, 2025. Reuters described the filing and the procedural history in its account of the settlement notice.
A San Francisco federal judge had dismissed the suit in July 2024. Plaintiffs appealed to the 9th Circuit, which postponed Sept. 17, 2025 oral argument so the parties could finalize settlement paperwork. The financial terms were not disclosed. Bloomberg Law reported the agreement will require approval from a federal district-court judge before becoming final in its report on court approval.
What should affected workers do now?
There is no automatic payout yet and no live claim form. Affected workers must await a finalized deal, court approval, a defined class, and a formal claims-notice process. Keep proof of Twitter employment, termination date, job level, pay, and years of service in one place.
Watch for notices from the court or appointed settlement administrator, not social-media posts claiming a filing link. Do not pay anyone to file for you at this stage. A legitimate process will state who qualifies, what documents count, and the exact deadline.
Is this the same as the executives' lawsuit?
No. Musk and X separately agreed to resolve a $128 million severance suit by former CEO Parag Agrawal, former CFO Ned Segal, former legal chief Vijaya Gadde, and former counsel Sean Edgett.
The Hindu BusinessLine identified those four plaintiffs and the $128 million amount in its report on the executive settlement. That executive case involves different contracts and much larger individual claims. Rank-and-file claimants should track only notices tied to the McMillian and Cooper class case.