
The US court dismissed the lawsuit against Elon Musk because the federal Employee Retirement Income Security Act (ERISA), which governs benefit plans, did not cover the former employees' claims, and therefore, the court lacked jurisdiction6.

Judge Trina Thompson cited the federal Employee Retirement Income Security Act (Erisa) in her ruling regarding the Twitter severance claims. She stated that Erisa did not cover the former employees' claims, as it did not apply to Twitter's post-buyout plan, and therefore, she lacked jurisdiction.

Elon Musk is currently facing numerous legal challenges, including allegations of gender discrimination and defamation, as well as engaging in retaliatory firings at companies such as Twitter, Tesla, and SpaceX. Additionally, there is an ongoing legal battle over Musk's contested multibillion-dollar pay package as CEO of Tesla.