Twitter
breached its contract by failing to pay millions of dollars in bonuses that the social
network, now called X Corp, promised to its employees. This was reported by Reuters, according to UNN.
Details
Former Twitter senior director of compensation Mark Schobinger, who in June
filed a lawsuit against Elon Musk's company a month after his dismissal,
accusing him of breach of contract.
Schobinger's lawsuit claimed that before and after billionaire Musk
bought Twitter last year, the company promised employees 50% of their
target bonuses in 2022, but never made those payments.
In denying Twitter's motion to dismiss, U.S. District Judge Vince
Chhabria ruled that Schobinger had made a reasonable claim for breach of contract
under California law and was covered by the bonus plan.
Once Schobinger did what Twitter asked, the company offered to pay him a bonus in return, which became a binding contract under California law. And, by allegedly refusing to pay Schobinger the promised bonus, Twitter breached this contract
Twitter's lawyers argued that the company had only made a verbal promise, which is not a
a contract, and that the case should be governed by Texas law.
But the judge ruled that the case was governed by California law, and that
"all of Twitter's contrary arguments fail."
Addendum
Since Elon Musk bought the company and fired more than half of its
of its employees, X has been the subject of numerous lawsuits by former employees and executives.
The lawsuits contain a number of claims, including that X discriminated against older
employees, women, and employees with disabilities, and that X failed to provide
about massive layoffs in advance. The company denies any wrongdoing
The departure of advertisers in 2023 cost Elon Musk's X network more than a billion dollars in lossesDecember 15 2023, 08:59 AM • 25233 views