A judge instructed X to pay the legal fees of former employees who said the company failed to repay them.
Delaware Chancery Court Judge Kathaleen McCormick on Tuesday ruled that X must pay $1.1 million to former employees who defended the company before the House Committee on Oversight and Reform.
The lawsuit originated when billionaire Elon Musk bought what was then called Twitter in October 2022. After taking control of the company, Mr. Musk fired most of the staff.
The lawsuit claimed that X “breached the agreements” it made with staff by paying only $600,000 worth of outstanding legal fees.
Judge McCormick defended the high sum in her ruling this week.
“I have reviewed the amount in question, and although it is high and probably higher than most humans would like to pay, it is not unreasonable,” she said.
Since Mr. Musk’s takeover of the company, X has been bogged down in legal fights. The company has been sued for everything from failing to pay severance to fired employees to failing to pay rent.
More recently, the company has been accused of trademark infringement by a Florida advertising agency, which claims a trademark on X. Mr. Musk recently changed the name of the social media company from Twitter to X.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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