12/07/2022

Ex-Twitter Employees Plan to ‘Bombard’ Company With Legal Claims

The mountain of litigation could cost Twitter millions

Just a month after Twitter's new CEO, Elon Musk, oversaw massive staff layoffs, former Twitter employees have announced that they’re filing suit over the company’s severance policies. In a press conference with their lawyer Lisa Bloom, former employees, Helen-Sage Lee, Adrian Trejo Nuñez and Amir Shevat, alleged the company’s handling of their termination constituted a breach of contract and a violation of California’s Worker Adjustment and Retraining Notification (WARN) Act.

It might only be a handful former employees now, but Twitter could soon be inundated with similar cases and be forced to pay legal fees running into millions of dollars. Rafael Nendel‑Flores, a California-based employment lawyer, said the legal strategy of filing multiple arbitration suits, which is likely a way to get around the constraints of a dispute resolution agreement, will pile pressure on Twitter. "Just the arbitration fees alone could be massive," he said.

That's because employers, in this case Twitter, are required to shoulder the cost of the arbitration process. And having hundreds or thousands of cases to contend with all at once could be a significant financial and administrative burden for a company already struggling with a massive loss in advertiser revenue. Each individual arbitration case can easily cost between $50,000 and $100,000, said Nendel-Flores. "That is, in my view, a significant pressure point—that Ms. Bloom and probably other plaintiffs' lawyers are going to try and push these individual arbitration cases."

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