Next Article
X Corp wins in court over ex-employee arbitration fees
X Corp (formerly Twitter) just scored a win in court: they don't have to pay the upfront arbitration fees for lawsuits brought by ex-employees laid off after Elon Musk bought the company in 2022.
The appeals court said it's up to JAMS—the arbitration firm—not federal courts, to decide who covers those costs.
Context on the case
After Musk's takeover, about 6,000 employees lost their jobs.
Many had signed agreements saying disputes would go through JAMS arbitration, but X Corp refused to pay the $1,500 starting fee, pointing to an opt-out clause from when people were hired.
Although a lower court originally sided with workers, this latest ruling reversed that.
Meanwhile, X is still facing other legal battles over layoffs and severance.