One other day, one other unpaid severance lawsuit towards Twitter/X and Elon Musk. Former Twitter govt Nick Caldwell is suing the social media platform for about $19.3 million in withheld entitlements, becoming a member of a slew of comparable claims which have arisen since Musk took over in 2022.

Filed in a California District Courtroom on Wednesday, the lawsuit states that Caldwell resigned from his former function as Twitter’s Basic Supervisor for Core Applied sciences on Oct. 22, 2022 — mere days earlier than Musk formally took the reigns as its new proprietor. On the time, Twitter’s termination coverage said that executives akin to Caldwell have been entitled to severance packages in the event that they resigned for “Good Purpose” or have been fired with out trigger. 

Caldwell contends that his resignation fulfilled this requirement as a result of Twitter going non-public meant he would not immediately report back to the CEO of a publicly traded firm. Such a circumstance was particularly listed as a “materials hostile change” and “Good Purpose” for resigning beneath the corporate’s termination coverage. Twitter was formally delisted from the New York Inventory Alternate on Oct. 28.

In response to Caldwell’s resignation, Twitter/X allegedly advised him that he would serve out his discover interval till Nov. 27, however didn’t present its commonplace separation settlement regardless of repeated requests. Musk subsequently fired Caldwell on Nov. 27, terminating him for alleged “failure to adjust to the Firm’s written insurance policies or guidelines, together with its code of conduct,” in addition to “gross negligence or willful misconduct within the efficiency of [his] duties.”

This meant that, in Musk’s evaluation, Caldwell had been fired with trigger and was thus not entitled to his $19.3 million severance bundle. Caldwell disputes this, claiming that he resigned for “Good Purpose” earlier than he was ostensibly fired, and that Twitter/X failed to supply any details or proof to substantiate its accusations towards him.

“Tellingly, Musk’s termination letter, like these of the opposite executives, didn’t embody any details demonstrating any misconduct or grounds for termination for ‘Trigger,'” the lawsuit reads (emphasis unique). “With no factual foundation, Musk merely accused Mr. Caldwell of misconduct as a ploy to evade paying him thousands and thousands of {dollars} in severance advantages that Musk/Twitter owed to Mr. Caldwell.”

Along with his $19.3 million severance entitlements, Caldwell is in search of curiosity, lawyer’s charges, and nearly $490,000 for the worth of the restricted inventory items Twitter/X ought to have vested when his employment ended.

Twitter/X and Musk have been accused of withholding severance from over 2000 folks

That is removed from the one case of unpaid severance plaguing Twitter/X. The corporate has been inundated with a deluge of severance claims since Musk’s acquisition in late 2022, with the billionaire having laid off roughly 80 p.c of its employees. Final September the corporate agreed to settlement talks with roughly 2,000 former staff, all of whom have accused Twitter/X of withholding their entitlements.

Caldwell is not even the one former Twitter/X govt chasing thousands and thousands in severance. In an identical lawsuit filed final month, Twitter/X’s former Chief Government Officer Parag Agrawal, Chief Monetary Officer Ned Segal, Chief Authorized Officer Vijaya Gadde, and Basic Counsel Sean Edgett accused the corporate of withholding a mixed whole of over $128 million in unpaid severance. Like Caldwell, these former executives additionally accused Musk of fabricating causes to fireplace them with the intention to keep away from paying out their entitlements.

“As a result of Musk determined he didn’t need to pay Plaintiffs’ severance advantages, he merely fired them with out purpose, then made up faux trigger and appointed staff of his varied firms to uphold his choice,” the plaintiff’s grievance learn. “He claimed in his termination letters that every Plaintiff dedicated ‘gross negligence’ and ‘willful misconduct’ with out citing a single reality in help of this declare.”

Principally, there appear to be two prospects. Both Twitter/X’s complete govt suite was participating in gross negligence and willful misconduct, egregious behaviour which went utterly undetected till Musk figured it out inside mere hours of taking up the corporate. Or Musk was making an attempt a careless, ill-conceived scheme to cease haemorrhaging cash right into a $44 billion acquisition he didn’t need however was legally obligated to undergo with.