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Twitter Inc. has been sued for reportedly refusing to proceed with approximately 900 arbitration cases filed by ex-employees who either quit or were laid off after Elon Musk acquired the social media company in the previous year. The proposed class action was filed in the federal court in San Francisco, accusing Twitter of impeding the progress of at least 891 cases by not paying the necessary initial arbitration fees. Interestingly, the company had required laid-off workers to sign agreements to arbitrate legal disputes as a condition for receiving severance pay.
The lawsuit was initiated by Fabien Ho Ching Ma, an ex-employee who Twitter laid off in November 2022. Ma and numerous other former employees claim that Twitter failed to fulfill its promised severance payments. When employees bring legal claims for arbitration based on their agreement, it is the employer’s responsibility to cover the initial filing fees, which typically amount to around $1,500, in order for the cases to proceed. Ma alleges that JAMS, the arbitration service selected by Twitter, recently informed workers that it would decline to arbitrate any cases in which the company has not paid the required fees.
Interestingly, Twitter no longer maintains a media relations department. When approached for comment via email, the company responded with an automatic reply containing a poop emoji, reflecting its refusal to engage in discussion on the matter.
See also: Twitter Faces Lawsuit Alleging Failure to Honor Worker Bonuses Worth Millions
Shannon Liss-Riordan, a Boston-based lawyer known for her involvement in multiple lawsuits, has taken up Ma’s representation. Liss-Riordan has filed a series of lawsuits and nearly 2,000 individual arbitrations related to Twitter’s extensive layoffs that commenced last year.
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After Musk’s acquisition in October, Twitter laid off more than half of its workforce as a cost-saving measure, prompting many others to quit. The pending lawsuits involve various claims, including allegations that Twitter specifically targeted women and workers with disabilities during the layoffs, violated severance agreements, and failed to provide adequate advance notice as federal and state laws required. While Twitter has denied any wrongdoing in cases where it has responded, the legal battle continues to unfold.
Ma’s lawsuit seeks an order compelling Twitter to pay the arbitration fees and allow the pending cases to proceed. According to the filed complaint, the workers who initiated the underlying cases are pursuing damages exceeding $5 million.
Twitter finds itself entangled in a legal battle as allegations surface regarding the company’s refusal to move forward with arbitration cases filed by nearly 900 ex-employees affected by the layoffs and resignations following Elon Musk’s acquisition. The outcome of this lawsuit could have significant implications for Twitter’s treatment of its former employees and the company’s adherence to severance agreements and employment laws.
This is the case of Ma v. Twitter, U.S. District Court for the Northern District of California, No. 3:23-cv-3301.
