Laid-Off Twitter Workers Advance Age Discrimination Lawsuit

X Corp. must face a proposed class lawsuit alleging layoffs conducted as part of Elon Musk’s takeover of Twitter Inc. fell hardest on subgroups of workers older than 50 and those older than 60.

The ruling Tuesday addressed an issue that has divided some federal appeals courts: whether subgroups of workers 40-and-older can sue for disparate impact age discrimination under federal law. They can, the US District Court for the Northern District of California said, agreeing with decisions by the Third Circuit and the Seventh Circuit.

The US Supreme Court held in 1996 that disparate treatment claims under the ...