Twitter Sued Amid Musk's Plans to Lay Off 50% of Employees
Godfrey Benjamin Nov 04, 2022 19:00
Elon Musk may have to battle a new class action lawsuit over alleged Twitter staff layoff
Elon Musk might be the new owner of the social media giant, Twitter Inc, but he sure isn’t getting off on the right footing.
The company has recently been sued through a class action lawsuit that seeks to prohibit the firm from laying off over 50% of its staff as planned.
Rumors of impending staff retrenchment have always been a major fear since the negotiations leading to the completion of the $44 billion company. According to several reports, Musk started firing the projected 3700 staff on Friday, a move that has drawn criticism from observers across the board.
The class action lawsuit was filed by Shannon Liss-Riordan, the attorney who also took Elon Musk and his electric automaker offshoot, Tesla Inc to court back in June when 10% of the workforce was laid off at the time. Though Liss-Riordan lost the suit at the time, she is confident that Musk cannot continue to thump his feet on the law everywhere he goes.
“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan said in an interview.
Specifically, Elon Musk is being accused of breaking both California and Federal laws as the federal Worker Adjustment and Retraining Notification Act (WARN) Act demands that large companies be expected to give a 60-day notification in the case of a layoff.
The lawsuit, filed in San Francisco demands that Musk and Twitter do the right thing while also preventing staff from signing documents that will make them give up their rights in civil litigation against the company.
As the renowned advocate of Dogecoin (DOGE), the prospect of the lawsuit as well as the rocky start to his tenure as owner of Twitter with ad customers pulling off the platform, the memecoin has derailed on its growth path, dropping by 4.37% to $0.1244, the only coin in the top 10 with a loss over the past 24 hours.
