to report Courthouse NewsA federal judge ruled Friday that X breached its contract with its employees. Twitter, now X Corp, has breached its contract by failing to pay millions of dollars in bonuses.
Mark Schubinger Before leaving the company Elon Musk In May (May and June), he was the senior director of salary and benefits of X. In June (July and June), he sued X for breach of contract.
Schubinger’s lawsuit alleges that before and after X’s acquisition last year, the company promised employees 50 percent of its 2020 target bonuses; But he never made these payments.
Vince ChabriaIn denying X’s motion to sever the case, a U.S. district judge ruled that Schubinger had properly asserted a breach of contract claim under California law.
“When Schübinger complied with Twitter’s request, Twitter offered to make their contract governed by California law in exchange for compensation,” the judge said. So by allegedly refusing to pay Schubinger the promised bonus, Twitter has breached that contract.”
X’s attorneys argued that this was not a contract, that the company had only made a verbal promise, and that Texas law should govern the case. The judge ruled that California law governs the case, and Twitter’s arguments are all dismissed.
Since Musk bought the company and laid off more than half of its workforce, X has faced numerous lawsuits from former employees and executives.
These complaints raise a range of claims; Including that X discriminated against older employees and women and disabled workers and did not give advance notice when mass layoffs. X has denied all the charges.
