Numerous allegations are made in the complaints, such as that X failed to notify workers in advance of mass layoffs and discriminated against women, older workers, and workers with disabilities.
Washington, DC A federal judge said on Friday that Twitter had breached contracts by neglecting to pay millions of dollars in bonuses that the social media company—now known as X Corp—had promised its workers.
Before departing Elon Musk’s firm in May, Mark Schobinger served as Twitter’s senior director of compensation. In June, he filed a lawsuit against the company, alleging breach of contract.
According to Schobinger’s lawsuit, Twitter guaranteed its staff 50% of their 2022 goal incentives both before and after the billionaire Musk purchased the company last year, but it never fulfilled this promise.
U.S. District Judge Vince Chhabria denied Twitter’s move to dismiss the case, finding that Schobinger had a valid claim of breach of contract under California law and that the claim was supported by a bonus plan.
“Once Schobinger complied with Twitter’s requests, Twitter’s offer to give him a bonus turned into a legally enforceable agreement under California law. Additionally, Twitter allegedly broke that agreement by not giving Schobinger the bonus that was promised, the judge noted.
There is no longer a media relations office for X. When a comment was made to its X account outside of regular business hours, the company did not quickly reply.
According to Courthouse News, which broke the decision first, Twitter’s attorneys contended that the business had just made an oral commitment that did not constitute a contract and that Texas law should apply in this case. Twitter’s opposing arguments are all deemed to be invalid by the judge, who declared that California law applied to the case.
Since Musk acquired the business and fired more than half of its staff, X has been the target of multiple lawsuits from former executives and workers.
Numerous allegations are made in the complaints, such as that X failed to notify workers in advance of mass layoffs and discriminated against women, older workers, and workers with disabilities. The business disputes any misconduct.