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Twitter’s X Network Faces 2,200 Arbitration Cases After Elon Musk’s Takeover: Filing Fees Could Reach $3.5 Million

X, the Social Network Formerly Known as Twitter, Faces 2,200 Arbitration Cases

Introduction

X, previously known as Twitter, is currently dealing with 2,200 arbitration cases filed by former employees. These cases were brought about after Elon Musk took over the company, implemented significant workforce reductions, and made various sweeping changes. The sheer volume of cases could potentially result in filing fees amounting to $3.5 million.

The Lawsuit and Allegations

A recent court filing in a Delaware district court, specifically the case of Chris Woodfield v. Twitter, X Corp. and Elon Musk (No. 1:23-cv-780-CFC), revealed the extent of the arbitration cases. Woodfield, a former senior staff network engineer based in Twitter’s Seattle office, claims that Musk’s Twitter (now referred to as X) failed to honor severance payment commitments and further delayed the alternative dispute resolution process by neglecting to pay the necessary JAMS arbitration system fees.

Arbitration Fees and Contention

JAMS, the chosen arbitration system, has set a filing fee of $2,000 for two-party matters and $400 for employment-related disputes. As JAMS ruled that this basic fee applies uniformly to X’s 2,200 arbitration cases, the total amount would reach approximately $3.5 million, with additional fees potentially following. X’s legal representatives argue against assuming responsibility for the majority of the filing fees, asserting that arbitration was not mandated for issue resolution.

Attempts to Move Cases to Trial

Woodfield and other individuals in similar circumstances are endeavoring to bypass arbitration and transfer their cases to trial. This situation echoes a proposed class action case, Ma v. Twitter, filed in a federal court in San Francisco’s Northern District (No. 3:23-cv-3301). In this particular lawsuit, former employees during the Musk-era accuse the company of delaying at least 891 arbitration cases by failing to pay the requisite filing fees after compelling employees to agree to arbitration as a condition for receiving severance.

Arbitration Debate

Arbitration agreements are commonly required by numerous large corporations, where legally permissible, upon employment. This means that individuals seeking to speak freely in court, where their statements become part of the public record, must first obtain an exemption from a judge. Critics criticize arbitration as a secretive system that hinders employees and prospective hires from learning about a company’s treatment of its workers and the outcomes of previous related cases. On the other hand, proponents argue that arbitration enables efficient resolution of issues between companies and employees without burdening employees with substantial attorney’s fees, particularly if their case is unsuccessful.

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Derrick Santistevan
Derrick Santistevan
Derrick is the Researcher at World Weekly News. He tries to find the latest things going around in our world and share it with our readers.

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