Judge spanks Musk and “X”, refuses to toss lawsuit after employees fail to receive promised bonuses

admin27 December 2023Last Update :
Judge spanks Musk and "X", refuses to toss lawsuit after employees fail to receive promised bonuses

Judge spanks Musk and “X”, refuses to toss lawsuit after employees fail to receive promised bonuses،

If Elon Musk had to start over, would he still have paid $44 billion to buy this constant headache he calls “X?” » Of course he would. You don't become one of the richest men in the world if you're not a selfish narcissist who thinks he's never made a mistake. The latest ripped-from-the-headlines “X” issue revolves around a lawsuit filed by an “X” employee who claims Musk failed to deliver millions of dollars in bonuses promised to employees.

According to The New York Post, Vince Chhabria, U.S. District Court Judge said Friday it would allow a lawsuit against the company to proceed. The complaint was filed by Mark Schobinger, Twitter's former senior director of compensation; Schobinger left the company in May, but not before filing a lawsuit against “X,” accusing the social media company of breach of contract.

Schobinger's lawsuit claims that top company officials made verbal promises before and after Musk acquired Twitter. Employees were told they would receive half of their 2022 bonuses as long as they stayed with the company through the first quarter of this year. The payments were never made, as Schobinger claims in his complaint filed on behalf of himself and 2,000 current and former employees of “X.”

The suit seeks $5 million, and with Judge Chhabria denying Twitter's request to dismiss the case, the judge said Schobinger's complaint meets the requirements for a breach of contract claim under California law . The judge also recognized that Schobinger was covered by a bonus plan. “Once Schobinger did what Twitter asked of him, Twitter's offer to pay him a bonus in exchange became a binding contract under California law,” the judge said. “And by allegedly refusing to pay Schobinger the promised bonus, Twitter breached that contract.”

Twitter argued that the oral agreement should not be valid and that Texas law should apply. Judge Chharbria said California law applied to this case and added that Twitter's “arguments to the contrary all fail.”