X Corp Avoids Paying Arbitration Fees in Dispute with Former Employees

X Corp has won a significant legal victory in its ongoing disputes with former employees, as a U.S. appeals court ruled that the company isn't required to pay initial arbitration fees in these cases. The decision follows claims from ex-workers who were terminated after Elon Musk acquired the company, now known as X.

The court highlighted the goals of arbitration, suggesting that involving federal courts in procedural disputes would undermine the process's efficiency. This comes in response to a collective legal action brought against X, which has already settled a substantial lawsuit in California concerning severance payments.

X Corp contends that the employees had opted out of arbitration, opposing a prior decision by a federal judge. The ruling now assigns the task of addressing fee-related disputes to JAMS, reinforcing the arbitration agreement's stipulations.

(With inputs from agencies.)