Former staff members of X impacted by the mass layoffs following Elon Musk’s acquisition of Twitter may soon obtain their severance payments. Some of these dismissed employees have joined a class-action lawsuit against X (previously Twitter), claiming they did not receive the severance payments they were owed.

A court document submitted this week suggests that the involved parties are nearing a settlement in the $500 million class action lawsuit. Both sides have submitted a joint motion to postpone the upcoming oral arguments “pending the finalization and administration of an imminent class-wide settlement agreement.” The filing also notes that the settlement will “include a proposed distribution of funds to the members of the settlements class(es).”

In October 2022, Elon Musk officially assumed control of X and quickly laid off over 70 percent of the workforce. Subsequently, former employees initiated a lawsuit asserting they received only a month of severance pay or, in some instances, none whatsoever.

The lawsuit alleged that X violated its severance policy, which guaranteed two months of base salary along with an extra week for each year of service. Recently, the court dismissed the case but permitted the plaintiffs to amend their complaint and file an appeal. Now, the parties have reached an initial agreement.

The specific amount the plaintiffs may receive remains uncertain, but the original lawsuit asserted they were owed a total of $500 million in severance pay.

“If the district court gives the green light to this proposed distribution,” the filing noted, “the agreement will fully resolve the litigation and render this appeal moot.”