Elon Musk’s social media company, X Corp, has reached a tentative settlement with thousands of former Twitter employees who claimed they were denied severance pay following the company’s massive layoffs in 2022. The development could bring closure to one of the longest-running disputes since Musk’s turbulent takeover of the platform.

Attorneys representing both sides informed a U.S. court on Wednesday that they had agreed in principle to resolve the case. They also requested that an upcoming appeals court hearing be delayed while final terms of the agreement are ironed out. While details of the financial settlement remain undisclosed, the move suggests thousands of affected workers may finally see the compensation they had been promised.

The case traces back to Musk’s $44 billion acquisition of Twitter in late 2022. Almost immediately after taking control, Musk slashed about 6,000 jobs in an effort to cut costs and overhaul the platform, which he later rebranded as X. Many of those dismissed said they were entitled to benefits under Twitter’s 2019 severance plan—but received either reduced packages or nothing at all.

The proposed class-action lawsuit was initially filed in California by two former senior employees—Courtney McMillian, who once led Twitter’s employee benefits programs, and Ronald Cooper, an operations manager. They alleged that the company had withheld as much as $500 million in severance obligations.

Under Twitter’s 2019 plan, most employees were guaranteed a minimum of two months’ base pay, plus an additional week of pay for each year of service. Senior staff like McMillian were eligible for as much as six months’ salary. Instead, Musk’s company reportedly capped payouts at just one month’s pay, and in many cases provided nothing at all.

The lawsuit faced setbacks along the way. In July 2024, a federal judge in San Francisco dismissed the claims, siding with Musk’s company. The plaintiffs appealed the ruling to the 9th U.S. Circuit Court of Appeals, which had scheduled oral arguments for September 17, 2025. That hearing will now be postponed while both parties finalize the agreement.

The severance case is just one of several legal challenges Musk’s company continues to face over the handling of the mass layoffs. Additional lawsuits remain active in both California and Delaware, where former employees are still contesting their dismissals and the compensation terms.

If this deal goes through, it would mark a rare resolution in Musk’s stormy stewardship of the platform, which has seen constant controversy since he assumed control. For thousands of workers suddenly left without jobs nearly three years ago, the settlement could finally bring long-awaited relief.