X Corp. and a former Twitter Inc. worker reached a settlement in principle that would end a lawsuit alleging that layoffs following Elon Musk’s 2022 Twitter takeover lacked required notice.

The settlement would cover about 6,000 workers who were laid off after Elon Musk bought the company for $44 billion and rebranded it as X.

Billionaire Elon Musk and his social media firm X have reached a tentative settlement with former employees who had sued for $500m (£373m) in severance pay. The parties reported the deal in a court filing on Wednesday,