Elon Musk is in soup when his social media platform X (formerly Twitter) has encountered significant legal challenges both in the United States and Brazil.
Here’s what happened to Elon Musk:
In a recent development, X lost an arbitration case regarding severance pay for a former employee laid off after Musk’s $44 billion acquisition in 2022. This case could set a precedent for over 2,000 ex-employees who filed similar complaints.
Shannon Liss-Riordan, the lawyer representing the former employees, stated, “The arbitrator awarded the full severance package to our client. We are excited about this development and hope it foreshadows more good news to come.”
While details of the ruling remain confidential due to the private nature of the proceedings, Liss-Riordan revealed that 15 cases have undergone arbitration hearings, with more rulings expected soon. She expressed hope that favourable outcomes might lead to negotiations, saying, “We hope that if more rulings come down our way, Twitter/X will be willing to come to the table and negotiate a settlement for everyone.”
This legal defeat follows a July case where X successfully defended against a $500 million lawsuit related to severance pay under the Employee Retirement Income Security Act.
Is X facing legal troubles?
Simultaneously, X faces legal troubles in Brazil. The country’s Supreme Court ordered the platform’s suspension, threatening a daily fine exceeding $900,000 for non-compliance. Judge Alexandre de Moraes accused X of “unlawfully, persistently and intentionally” failing to comply with judicial orders.
In response, X appointed Rachel de Oliveira Conceicao as its new legal representative in Brazil, adhering to local laws. This move came after the company lost its legal standing in the country following the closure of its Brazilian offices in August.
These legal challenges underscore the complex regulatory and legal landscape Musk’s X continues to navigate globally.
