Major Legal Challenge Ahead for Company X After Recent Court Decision

A U.S. judge rules that former employees of Company X can proceed with a class action lawsuit for age discrimination following a mass layoff.

At a Glance

A federal judge in San Francisco rules that around 150 older workers laid off by social media platform X can sue for age discrimination as a class.
The ruling exposes the company to potential damages amounting to millions of dollars.
Judge Illston states the case presents a common question regarding the impact of a 2022 mass layoff on workers aged 50 and older.
Zeman’s lawsuit claims that 60% of employees aged 50 or older and nearly 75% of those over 60 were laid off, compared to 54% of employees younger than 50.
X denies engaging in discrimination and states that the entire communications department was eliminated regardless of age.

Mass Layoff Spurs Legal Action

A federal judge in San Francisco has ruled that around 150 older workers laid off by social media platform X, formerly known as Twitter, can proceed with a class action lawsuit for age discrimination. This decision marks a significant step in addressing whether X’s 2022 mass layoff disproportionately impacted older employees, who claim they were unfairly targeted.

The ruling now allows these former employees to collectively argue that the layoffs were discriminatory, potentially leading to substantial damages amounting to millions of dollars for the company. U.S. District Judge Susan Illston noted that the case presents a significant question about the impact on workers aged 50 and older.

Judge Illston has emphasized the gravity of the evidence presented. Plaintiff John Zeman, a former employee in X’s communications department, originally filed the lawsuit in 2023. Zeman’s lawsuit stipulates that 60% of employees aged 50 or older, and nearly 75% of those over 60, were among those laid off, compared to 54% of employees younger than 50.

🔵 US JUDGE SAYS X MUST FACE CLASS ACTION AGE BIAS CLAIMS OVER MASS LAYOFF

A federal judge in San Francisco has ruled that roughly 150 older workers who were laid off by social media platform X when Elon Musk acquired the company can sue for age discrimination as a class,… pic.twitter.com/yZ3drzNzZe

— PiQ (@PiQSuite) September 4, 2024

Company X Denies Discrimination

X has denied any involvement in discriminatory practices, stating that the layoffs affected the entire communications department irrespective of age. Shannon Liss-Riordan, a lawyer representing Zeman and other former Twitter employees, expressed satisfaction with the judge’s ruling. “Plaintiff has shown beyond mere speculation that Twitter may have discriminated against older employees in the November 4, 2022 (mass layoff), which constitutes a single decision that affected all members of the proposed class,” she said.

This legal battle is only one among approximately a dozen cases X faces after Elon Musk’s decision to lay off more than half of Twitter’s workforce in 2022. Allegations range from laying off employees without required notice, targeting women, and forcing out workers with disabilities by banning remote work.

Potential Precedent for Age Discrimination Cases

This case could set a strong precedent for how age discrimination claims are handled in large-scale corporate layoffs. U.S. District Judge Illston’s recognition of this as a potential collective action allows Zeman’s lawyers to notify other potential class members, offering them the option to join the lawsuit. The judge has conditionally certified the collective action on behalf of former Twitter workers aged 50 and older.

The certification stage is crucial, as it indicates that the complaint goes beyond mere speculation that X may have discriminated against older employees. This judicial decision highlights the importance of equitable employment practices and serves as a strong reminder of the anti-discrimination protections that workers are entitled to under the law.