Musk Wins Dismissal of All Claims in Ex-Twitter Worker Lawsuit

A federal judge dismissed all claims against X Corp.'s billionaire CEO Elon Musk in a lawsuit by former Twitter employees seeking severance, ruling they failed to prove he should be held personally liable.

Federal judge Todd M. Hughes rejected the employees’ attempt to “pierce the corporate veil” and hold Musk responsible for actions by Twitter, now X, and its corporate entities. The judge found the six former employees, including former executive Tracy Hawkins, failed to argue that Musk and Twitter operated as a single entity.

The employees’ claims that Musk could control access to accounts or subscription pricing “fall short of demonstrating exclusive dominion control,” Hughes wrote for the US District Court for the District of Delaware. The judge, appointed by President Barack Obama, also dismissed fraud and wage theft claims accusing Musk of direct liability. Those claims were dismissed without prejudice.

The decision follows a magistrate judge’s January recommendation that several claims should proceed against Musk, including those under federal and state mass layoff laws. The recommendation found Musk waived key dismissal arguments by making them only in a footnote.

The case is Arnold v. X Corp., D. Del., 23-cv-00528, 9/29/25