Judge rules that Twitter’s laid-off workers have dropped a lawsuit regarding severance

(Reuters) – Twitter Inc. has won a ruling that allows it to force many laid-off workers suing for their termination to file individual arbitration claims instead of a class action lawsuit.

On Friday, James Donato, U.S. District Judge, ruled that five former employees of Twitter who are pursuing a class action against the company for failing to provide adequate notice before they were laid off following its acquisition by Elon Musk’s purchase must proceed in private arbitration.

Twitter requested Donato grant Twitter the authority to forcibly the five ex-employees to pursue individual claims citing the agreements they made with the company.

Twitter didn’t immediately respond to a request to comment.

San Francisco Judge left for another day “as justified by developments in the case” whether or not the entire class action lawsuit should be dismissed. However, he noted that three other former Twitter employees, who claimed they had opted-out of the arbitration agreement, have joined the lawsuit shortly after it was filed.

Donato had ruled last year, that Twitter must notify the thousands who were laid off following the acquisition of Musk by Twitter. The ruling came in the wake of a class action in which the company was accused of not giving adequate notice before terminating employees.

Judge said that Twitter must provide workers with a concise and clear notice before asking them to sign severance contracts waiving their right to sue the company.

Twitter laid off around 3,700 employees early November as part of a cost-cutting initiative by Musk. Many more employees subsequently resigned.

Twitter was also accused in December 2013 by many former employees of legal violations arising from Musk’s takeover. This included targeting women for layoffs as well as failing to pay promised severance.

Twitter has also been subject to at least three U.S. Labor Board complaints. These claims claim that employees were fired from the company for criticizing it, organizing a strike or other violations of federal labor law.

(Reporting done by Mrinmay dey in Bengaluru and Nate Raymond, Boston. Editing by Angus MacSwan.