X Corp., Musk Defend Severance Suit by Disputing Plan Existence

Twitter successor X Corp. asked a federal court to dismiss litigation over severance benefits allegedly owed to former employees in the wake of Elon Musk’s takeover of the company, saying the lawsuit is based on “fantastical assertions.”

The proposed class action, which says thousands of former workers are together owed at least $500 million under Twitter’s severance plan, “fails for the simple reason that there is no such thing as a ‘Twitter Severance Plan,’” X and Musk said Tuesday in a motion to dismiss. The workers’ failure to show that the company sponsored a severance plan governed by ...