Former Twitter, renamed X Corp. led by Elon Musk, is seeking repayment of overpayments from sacked Australian employees, claiming it made a currency conversion error and mispriced the value of shares when paying compensation.
Musk Lawsuit
Claims Against Former Employees
X Corp. Elon Musk (formerly Twitter) has made financial demands on at least six former Australian employees who were laid off last year. The company claims it mistakenly overpaid them significant amounts of severance compensation. According to a report in the Sydney Morning Herald, the error occurred due to an incorrect conversion of US dollars into Australian dollars when calculating the value of shares issued to employees upon hiring.
Amount of overpayments and claims
Overpayments ranged from A$1,500 to A$70,000 each dismissed employee. X Corp. demanded the return of funds as quickly as possible, threatening legal action if they refused to pay the overpaid amounts along with interest. Under Australian labor law, if there is a proven mistake by the employer, terminated employees are required to return any overpayments.
Error in stock valuation
An error occurred when valuing the value of Twitter shares that were issued to employees as deferred compensation upon hiring. The company inflated the value of shares by approximately 2.5 times compared to the market price at the time of dismissal, which led to overpayment of compensation.
Glossary
- X Corp. (formerly Twitter) is a social media company acquired by Elon Musk in 2022 and renamed X Corp.
- Elon Musk is a famous entrepreneur, head of Tesla, SpaceX and X Corp.
- Sydney Morning Herald - an influential Australian newspaper that published material about X Corp overpayments.
Links
- Sydney Morning Herald: Elon Musk chases overpayments from Australia's sacked Twitter staff
- Ars Technica: Musk's X demands money from laid-off employees, claims they were overpaid
Answers to questions
For what reason is X Corp. (formerly Twitter) demanding refunds from some former Australian employees?
How were former Twitter employees compensated in Australia?
What is the amount of overpayments made by X Corp. Australian workers?
Do former employees have the right not to return overpaid amounts?
What other problems did X Corp face? after the acquisition of Twitter?
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Discussion of the topic – Twitter layoff scandal: Elon Musk demands refund of overpayments
Following mass layoffs at Twitter (now X Corp), Elon Musk's company is demanding former employees repay amounts ranging from $1,500 to $70,000 that X claims were overpaid in settlements.
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