FOLLOW US

Wed

July 14, 2026

America April 17, 2024 3 mins read

The High Stakes of Musk’s $500M Severance Battle

America ı By Rihem Akkouche

0 Comments

Musk $500M Severance Fight

In a high-stakes legal battle that could redefine severance obligations, a California federal court has put a temporary halt to the discovery process in a case involving X (formerly known as Twitter). The company is accused of failing to pay $500 million in severance following the layoffs triggered by Elon Musk's acquisition. This pause comes as the court considers a potentially game-changing motion to dismiss the case altogether.

A Strategic Pause Amid Legal Wrangling

U.S. Magistrate Judge Robert M. Illman ruled in favor of X and Musk, granting their request to stay discovery. This decision aligns with the defendants' argument that the January motion to dismiss might render further proceedings unnecessary. Judge Illman emphasized that the motion does not need to definitively resolve the case but must merely show potential to do so.

In March, X and Musk contended that halting the discovery process was justified since their motion to dismiss described the severance claims as "fantastical," disputing the existence of any formal severance plan. The plaintiffs, Courtney McMillian and Ronald Cooper, responded on April 5, suggesting that the request to pause discovery was merely a tactic to delay legal proceedings. This strategy, they argued, mirrored the defense's approach in several other ongoing lawsuits.

Musk $500M Severance Fight : The Core of the Conflict

The dispute dates back to July when McMillian filed a lawsuit alleging X did not fulfill its severance promises to employees who were let go after Musk's $44 billion takeover in 2022. According to the complaint, the company offered affected employees a maximum of three months' compensation, partially adhering to the Worker Adjustment and Retraining Notification (WARN) Act, but allegedly failed to complete these payments.

"Public reports indicate that some of the laid-off workers have not received any severance," McMillian stated, highlighting the urgency of the claims.

As the motion to dismiss awaits a verdict from U.S. District Judge Trina L. Thompson, Judge Illman's "preliminary peek" at the merits suggests that a pause in discovery is justified until a decision is reached.

Musk $500M Severance Fight : Representation and Responses

The legal teams are gearing up for a potentially protracted battle. The workers are represented by a robust team from Sanford Heisler Sharp LLP, including notable attorneys like Kate Mueting and Charles Field. On the other side, X's defense is spearheaded by Morgan Lewis & Bockius LLP, with Mark A. Feller and Melissa D. Hill leading the charge.

As the legal community and public alike watch closely, representatives from both sides have yet to comment on the latest developments.

Previous Article

Lao Holdings Prepares for $275M IPO Splash

Read More
4367 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
Breaking News July 12, 2026
Graham Senate Seat Triggers Political Scramble
By – Michallie Harrison
America July 12, 2026
two killed in Toronto After Deadly street festival shooting
By – Rihem Akkouche
America July 12, 2026
Elephant Fire burns 4500 acres in Sierra County
By – Rihem Akkouche
Arizona January 11, 2025
Kelly Warner Law Firm Blames USA…

In what appears as a desperate attempt to defend multiple…

By – USA Herald
Arizona January 4, 2025
Aaron Kelly Law Firm Resorts To…

Attorney Aaron Kelly and his law partner Daniel Warner are…

By – Jeff Watterson
Arizona December 12, 2024
Arizona Bar Opens Investigation on Attorney…

USA Herald recently reported on a developing story involving Attorneys…

By – Paul O'Neal
America July 11, 2026
Oregon Withdraws Court Motion in Paramount-Warner…

Oregon blinked — but it did not back down. The…

By – Rihem Akkouche
America July 11, 2026
1 dead After fire at Davis…

A Saturday morning that began like any other in South…

By – Rihem Akkouche
America July 11, 2026
Apple Sues OpenAI Over Trade Secrets…

The partnership that placed ChatGPT inside hundreds of millions of…

By – Rihem Akkouche
America July 11, 2026
NYT Air Force One Subpoena Targets…

They came on a Friday evening, to the homes of…

By – Rihem Akkouche
America July 11, 2026
Gordie Howe Bridge to Open on…

Named for a hockey legend who won four Stanley Cups…

By – Rihem Akkouche
America July 11, 2026
Teen Football Player’s Death on Uninhabited…

Christine and Elmore Wonsley are not sleeping. They cannot. A…

By – Rihem Akkouche
America July 11, 2026
Teen Football Player’s Death on Uninhabited…

Christine and Elmore Wonsley are not sleeping. They cannot. A…

By – Rihem Akkouche
America July 11, 2026
Hundreds Of People at Summer Camp…

The water came faster than the roads could handle and…

By – Rihem Akkouche
America July 11, 2026
UFC Event Allegedly Targeted in White…

WASHINGTON, D.C. — A historic UFC Event held on the…

By – Jackie Allen
America July 10, 2026
Russia Sanctions Bill Gains BiPartisan as…

WASHINGTON, D.C. — Russia Sanctions legislation moved closer to becoming…

By – Jackie Allen
America July 10, 2026
Manhattanhenge 2026: Final Summer Sunset Alignment…

NEW YORK — Manhattanhenge is making its final appearance of…

By – Jackie Allen
America July 10, 2026
Jared Isaacman Says NASA Has Unexplained…

WASHINGTON, D.C. — Jared Isaacman, the administrator of NASA, says…

By – Jackie Allen
America July 10, 2026
Jared Isaacman Says NASA Has Unexplained…

WASHINGTON, D.C. — Jared Isaacman, the administrator of NASA, says…

By – Jackie Allen
America July 9, 2026
Erika Kirk Seeks Public Release of…

Erika Kirk, the widow of Turning Point USA co-founder Charlie…

By – Jackie Allen
America July 9, 2026
Bonnie Tyler Remembered as Legendary Welsh…

Bonnie Tyler, the Welsh singer whose unmistakable raspy voice powered…

By – Jackie Allen
America July 9, 2026
Assault on Iran Escalates as U.S.…

The Assault on Iran intensified after the United States launched…

By – Jackie Allen
America July 9, 2026
Broadcom Deal: Apple Commits More Than…

Apple is dramatically expanding its investment in American semiconductor manufacturing…

By – Jackie Allen
America July 8, 2026
Arranged Marriage Ends in Tragedy: Amazon…

An Arranged Marriage that began in the summer of 2025…

By – Jackie Allen
America July 8, 2026
Forensic Scientist Henry Lee’s Final Interview…

A legendary Forensic Scientist whose testimony influenced some of America’s…

By – Jackie Allen
America July 6, 2026
Accused of Rape:  Graham Platner Denies…

Accused of Rape, Maine Democratic U.S. Senate candidate Graham Platner…

By – Jackie Allen
America July 6, 2026
AI Regulation Debate Intensifies After Peter…

 The global debate over AI Regulation took a dramatic turn…

By – Jackie Allen
America July 5, 2026
California Chaos: Fourth of July Celebrations…

California Chaos unfolded across parts of Southern California during the…

By – Jackie Allen
America July 5, 2026
Paul Pelosi Faces Charge After Alleged…

Paul Pelosi, the husband of former House Speaker Nancy Pelosi,…

By – Jackie Allen
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
America July 8, 2026
Arranged Marriage Ends in Tragedy: Amazon…

An Arranged Marriage that began in the summer of 2025…

By – Jackie Allen
America July 4, 2026
Beach Closures Expand Across Long Island…

Beach Closures were spread across parts of New York just…

By – Jackie Allen
America July 3, 2026
Mars Rover Images Lead to Debates…

A new Mars Rover image captured by NASA’s Curiosity mission…

By – Jackie Allen
America July 3, 2026
Taylor Swift and Travis Kelce’s Star-Studded…

Taylor Swift and Travis Kelce’s highly anticipated wedding is finally…

By – Rihem Akkouche
America July 3, 2026
Federal Judge Sends Bad Bunny Reggaeton…

INSIDE THIS REPORT A federal judge denied summary judgment to…

By – Samuel Lopez
America July 3, 2026
Mike Rowe Sues Discovery for $2…

Inside This Report Mike Rowe is suing Discovery, claiming the…

By – Samuel Lopez
Health July 2, 2026
The Hidden Science Behind Why Your…

For millions of people, the first conscious act of the…

By – Tyler Brooks
Health July 2, 2026
The High Cost of the Infinite…

A significant legal chapter is closing for one of the…

By – Tyler Brooks
Health July 2, 2026
Kentucky Medicaid Alert How The Upcoming…

A significant change is arriving for thousands of Kentucky residents…

By – Tyler Brooks
Health June 29, 2026
Everything You Need to Know About…

As the calendar turns to July 1, residents of Georgia…

By – Tyler Brooks
Breaking News June 26, 2026
Trump Seeks $1.4 Billion as Congo…

The Trump Ebola funding request would provide more than $1.4…

By – Michallie Harrison
Health June 25, 2026
Temperatures in France were higher than…

The images coming out of Europe this week are nothing…

By – Tyler Brooks
America July 2, 2026
Taylor Swift Wedding Reports Claim Private…

Taylor Swift Wedding speculation intensified after reports claimed that pop…

By – Jackie Allen
High Profile Court Cases July 2, 2026
Justice Served as Former NFL Scout…

The Nashville courtroom fell silent this Wednesday as a jury…

By – Tyler Brooks
America June 29, 2026
Stonewall Riots: An Uprising That Changed…

The Stonewall Riots marked one of the most significant turning…

By – Jackie Allen
Sports June 26, 2026
USMNT Lost to Turkey at 90+8.…

Kaan Ayhan’s goal came in the 90th minute, plus eight.…

By – Nicolas Carreno
Entertainment June 25, 2026
Tears, Goals, and the Siuuu: IShowSpeed’s…

The 2026 FIFA World Cup has been a rollercoaster of…

By – Tyler Brooks
America June 22, 2026
World Cup History Made as Lionel…

World Cup history was made Monday afternoon in Arlington, Texas,…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter