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