Mcmillian V. Musk Et Al
Summary: This consolidated summary pertains to a lawsuit filed by Courtney McMillian against Twitter Inc. (now X Corp.), X Holdings Corp., and Elon Musk. The lawsuit alleges violations of the Employee Retirement Income Security Act (ERISA) and seeks the recovery of owed severance benefits for McMillian and a class of participants and beneficiaries of the Twitter Severance Plan. The complaint claims that the defendants, as fiduciaries of the Plan, failed to provide the benefits owed to participants and failed to disclose anticipated changes to the Plan. McMillian argues that Musk, as the CEO of Twitter, exercised control and discretion over the Plan and is personally liable for the violations. The lawsuit is filed in the United States District Court for the Northern District of California. The plaintiffs seek to hold the defendants personally liable for the harm suffered as a result of the breach of fiduciary duties. The lawsuit also alleges that Twitter and Mr. Musk violated their fiduciary duties by making decisions about the size and availability of plan disbursements, determining employee eligibility for severance benefits, and communicating with employees about the plan. The plaintiffs claim that these alleged violations caused harm to the plan and its participants by depriving them of the funds necessary to make full payments. The lawsuit provides a factual background, including details about Twitter's severance plan, the merger agreement between Twitter and Mr. Musk, and the defendants' failure to pay the promised benefits to plan participants starting in October 2022. The plaintiffs seek to certify the class action on behalf of all participants and beneficiaries of the plan who were terminated from Twitter since Mr. Musk's takeover. They allege that the defendants breached their fiduciary duties and seek remedies under ERISA. The lawsuit includes two counts: Count I alleges the denial of benefits under ERISA § 502(a)(1)(B), and Count II alleges the failure to provide complete and accurate information under ERISA § 404(a)(1). The plaintiff seeks recovery of benefits, interest, costs, attorneys' fees, and penalties. The defendants, including Musk and Twitter, are held liable for their alleged misconduct and breaches of fiduciary duties. The plaintiffs claim that Twitter made false statements about the existence of the plan and its benefits, causing harm to the employees who relied on these misrepresentations. The plaintiffs argue that all defendants are liable for breach of fiduciary duty and violations of ERISA. They seek various forms of relief, including compliance with the plan, appointment of independent fiduciaries, an injunction against further ERISA violations, disgorgement of excessive fees, personal liability for losses to the plan, attorney's fees, and full severance for terminated employees. The plaintiffs also request a trial by jury.
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