Jakarta –
Social media platform X (formerly Twitter) breached its contract by failing to pay millions of dollars in bonuses that the company, now called
Mark Schobinger, who was X’s senior director of compensation before leaving Elon Musk’s company in May, sued X Corp in June for breach of contract.
In the lawsuit, Schobinger revealed that before and after billionaire Musk bought X last year, the company promised employees 50% of their 2022 target bonuses but never made those payments.
US District Judge Vince Chhabria denied X’s motion to dismiss the case. According to him, Schobinger’s lawsuit is considered reasonable referring to California law regarding breach of contract claims.
“After Schobinger did what X asked, X’s offer to give him a bonus in return became a binding contract under California law. And by allegedly refusing to pay Schobinger the promised bonus,
X Corp did not immediately respond to requests regarding this lawsuit. X’s attorneys argued that the company made only verbal promises and not contracts, and that Texas law should govern the case, according to Courthouse News, which first reported the decision.
The judge ruled that California law governed the case and X’s arguments to the contrary all failed.
X has been hit by numerous lawsuits by former employees and executives since Musk bought the company and laid off more than half of its workforce.
The lawsuit makes various claims, including that X discriminated against older employees, women and workers with disabilities, and did not provide advance notice of mass layoffs. The company denies any wrongdoing.
Watch the video “X is predicted to lose $75 million USD as a result of Elon Musk being labeled an antisemite”
(afr/afr)
2023-12-23 14:45:23
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