In a recent legal development, social media giant X Corp, formerly known as Twitter, has been found in violation of contractual agreements for neglecting to fulfill promised bonuses amounting to millions of dollars for its employees. The ruling came from U.S. District Judge Vince Chhabria, who presided over the case filed by Mark Schobinger, former senior director of compensation at Twitter.
Schobinger’s legal action, initiated in June after his departure from Elon Musk’s company, alleged that Twitter, both before and after its acquisition by Musk, committed to providing employees with 50% of their targeted 2022 bonuses but failed to make the stipulated payments.
Judge Chhabria dismissed Twitter’s motion to dismiss the case, asserting that Schobinger had credibly presented a breach of contract claim in accordance with California law. The judge contended that Schobinger fell under the protection of a bonus plan and emphasized that Twitter’s failure to honor the promised bonus constituted a violation of the established contract.
Contrary to Twitter’s defense, which argued that the commitment was only verbal and not legally binding, the judge ruled that California law governed the case, dismissing Twitter’s counterarguments.
Notably, X Corp, now without a media relations office, has yet to respond to inquiries regarding the ruling. The company has faced a slew of legal challenges from former employees and executives since Musk’s acquisition, during which over half of its workforce was downsized.
These legal actions allege various improprieties, including discrimination against older employees, women, and workers with disabilities, as well as a failure to provide advance notice of substantial layoffs. X Corp denies any wrongdoing in these matters.
As the court decision unfolds, it marks a significant development in the ongoing legal landscape surrounding X Corp and underscores the importance of upholding contractual commitments to employees.
