Shulou(Shulou.com)11/24 Report--

CTOnews.com, September 5 (Xinhua)-- Company X (formerly known as Twitter) has been mired in legal disputes since it was taken over by billionaire Musk in October last year. The company not only faces class action lawsuits in California, accused of arrears of bonuses and severance payments to former employees, but also more than 2200 arbitration cases. the arbitration cases were disclosed in a lawsuit filed by former employee Woodfield in a Delaware court earlier this week. Woodfield sued Company X and Musk last month, alleging that they did not pay him the severance pay he deserved.

The lawsuits reflect Mr Musk's aggressive approach after taking over the social media giant, where he laid off a large number of employees, cutting the number of employees from 8000 to 1500 in April. This led many disgruntled former employees to file claims with the company, whose arbitration cases were conducted through a non-profit legal organization called JAMS. JAMS specializes in "alternative dispute resolution" services, which mediate disputes between the parties through third-party arbitrators, rather than through the court system. Woodfield said in his complaint that since December last year, former Twitter employees have submitted arbitration requests to X Company through JAMS. By January this year, there had been more than 200 cases, and so far the number has increased to more than 2200.

Woodfield also claimed that Company X and Musk also delayed paying their due JAMS arbitration costs. According to the JAMS website, each arbitration case requires a fee of $2000, of which the employee only has to pay $400 and the remaining $1600 is paid by the company. So if there were 2200 arbitration cases, the fees that Company X would have to pay would amount to $3.5 million (CTOnews.com Note: currently about 25.445 million yuan), plus the compensation and severance payments that might be awarded to employees, the total amount could be staggering.

These legal challenges are a big problem for X and Musk, whose other company, Tesla, has also adopted compulsory arbitration agreements, requiring employees to sign arbitration agreements as a condition of employment in some legitimate states. Regardless of the final outcome, Company X will pay the price, not only for legal fees, but also for the losses caused by a large number of talents and celebrities leaving the platform.

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