Twitter Faces $500 Million Lawsuit for Allegedly Not Paying Employee Severance
Twitter Faces $500 Million Lawsuit for Allegedly Not Paying Employee Severance
A lawsuit from the ex-head of HR claims Twitter owes $500 million for not paying all those people that Elon Musk laid off.
Imagine if you will, Elon writing a check to twitter so they have the funds to cover all of his mistakes.
81Elon, like Trump, has no money. He has credit and idiots willing to give it to him.
55Oh yeah, definitely doesn't have literal billions in Tesla/SpaceX stock that he could liquidate.
I'm so sick of people who clearly don't understand how money works giving their opinions. I don't like Elon any more than the next guy but the internet has truly shown me how hatred of someone leads to the smoothest brain takes imaginable.
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That would mean Elon admitting he made mistakes
18Now imagine suing the company that hired the employees that you refuse to pay.
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I dont understand how can people get away with not paying their employees
49It’s the US. If there is a country that hates its citizens more than this one, I haven’t heard of it yet.
Any time they can take things from you and give it to companies, they will.
So it shouldn’t really be a surprise.
But if you forget to pay $1 to a company, all hell breaks loose.
25It’s the US. If there is a country that hates its citizens more than this one, I haven’t heard of it yet.
Russia has been in the news cycle for over a year because of the war they started.
They imprison anyone critical of the government or the war. They imprisoned a man and deprived him of his fatherly rights because his daughter made an anti-war drawing at school.
They conscript men from poor ethnic regions by offering them a salary that's 10x of their current one. Then they send them to the front with no training or equipment to be cannon fodder.
They are stealing from the pension fund to support their war, which will have catastrophic consequences for the elderly population in the future.
I mean shit. Have you never heard of North Korea?
I guess none of that counts. US bad.
11They ought to rename "US citizens" to "US consumers" or "US production units", then they wouldn't have to sue all the time.
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Do you want the real answer? Its because workers rights in this country have been slowly eroding over the last 70 years. So now we've ended up in a situation where everyone keeps their head down and does as their told because they have no power to do anything about it.
Then the companies pay millions to prevent unions by telling us that unions are worthless. But if unions are worthless, why are they spending millions to prevent them ...?
13Agreed. Unfortunately, recently fired people are vulnerable and tired, and in financially precarious situations. Does anyone know who’s pursuing this, if it would cover everyone who wasn’t paid, and what happens if Twitter doesn’t follow through?
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I think we’ve established that Elon, in fact, cannot run Twitter better if he owned it.
41He can sink it though, just like he said with his viral picture.
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$500m to Elon is like $500 to the average American
15Not so much at the moment.
He borrowed 44 bn to buy Twitter and has a 1.5 bn payment coming up.
He is of course more liquid than any of us, but the fact that he keeps not paying various bills seems to indicate that he's having cash flow problems and is having to scrounge for his loan payment.
This is just one of many multi million dollar payments that musk and/or Twitter are fighting.
37He did not borrow 44 billion to buy Twitter.
He put about ~13 billion dollars of debt on Twitter itself, so he had to come up with about 31 billion in equity. He was able to secure third party equity commitments of around 7 billion (Larry Ellison, the Saudis, etc.). He also held a minority interest of about 4 billion in Twitter. He funded the remaining 20 odd billion with a combination of cash (from cash holdings and selling Tesla shares in early 2022) and equity margin loans on his remaining Tesla shares. It is understood that he likely paid off most of his margin loans as he continued to sell further Tesla shares in late 2022.
The 1.5 billion interest expense you mention is just for the bank debt (that the banks still hold, and have been unable to sell), and is Twitter’s responsibility, not Elon’s.
This is a long way of saying that I think the banks will own Twitter within 6-12 months. They will not roll over like landlords, and its far more clear cut for a missed loan payment.
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Looks old Musky better pay the piper!
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