A U.S. Judge has Ruled, that Twitter Violated Contracts when it Failed to Pay millions of dollars in Bonuses, that the Social Media Giant had promised Employees.
Mark Schobinger, Twitter's former Senior Director of Compensation, Sued the Social Media giant in San Francisco Federal Court earlier this year, after leaving the company. He alleged that before and after Elon Musk bought Twitter, Rebranding the company as X Corp., the company had promised employees 50% of their 2022 target Bonuses, but Failed to follow through.
"Plaintiff and other Twitter employees relied upon the promise that they would receive their 2022 bonus when choosing to remain employed by Twitter following Musk’s acquisition of the company, and/or deciding to forgo other employment opportunities," Schobinger alleged in the Complaint filed on June 20th, 2023.
U.S. District Judge Vince Chhabria on Friday, ruled that Schobinger had Plausibly stated a Breach-of-Contract Claim under California State Law, and that He was covered by a Bonus Plan.
The Judge also denied Twitter's Motion to Dismiss the Case. The company's Lawyers had argued that Texas Law should govern the Case, and that any Promises were made Orally and therefore should Not be considered a Contract.
“Once Schobinger did what Twitter asked, Twitter’s offer to pay him a bonus in return became a binding contract under California Law. By allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract,” Chhabria wrote. The jJdge also Ruled that "Twitter's contact arguments all fail."
X has been hit with an Onslaught of Lawsuits filed by Ex-Employees who were Laid-Off after Musk purchased the company for $44 billion last year. At least Two Class-Action Lawsuits, each seeking at least $500 million, have been Filed alleging that the company Violated Severance Policies.
The company Fired roughly 3,700 employees last November, 2022, which has spurred a Lawsuit alleging the company Violated a slew of Employment Laws prohibiting Discrimination based on Sex, Race and Age.

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