ALBAWABA - In a recent legal battle, a U.S. judge has delivered a verdict against Twitter, finding the social media giant in violation of its contract by failing to disburse promised bonuses amounting to millions of dollars. The case, brought by Mark Schobinger, former senior compensation director at Twitter, dates back to June, shortly before his departure from the company led by Elon Musk.
Schobinger's lawsuit asserts that Twitter, now known as X Corp, breached contracts by reneging on its commitment to pay substantial bonuses to its workforce. The dispute involves allegations that Musk, after acquiring Twitter last year, pledged to employees 50% of their 2022 target bonuses but did not follow through on these assurances.
U.S. District Judge Vince Chhabria rejected Twitter's attempt to dismiss the case, affirming that Schobinger's claims of a breach of contract under California laws were reasonable and fell within the parameters of a bonus plan.
Twitter's argument that the agreement was verbal and not governed by a written contract, with a plea for Texas laws to apply, failed to sway the judge. He maintained that California laws were applicable, and Twitter's counterarguments were deemed unsuccessful.
The lawsuit comes amid a series of legal challenges faced by X since Musk's acquisition, including accusations of discrimination against older employees, women, and disabled workers. Moreover, the company stands accused of failing to provide advance notice of substantial layoffs that affected more than half of its workforce.
This legal development adds to the complex narrative surrounding Twitter's post-acquisition era and underscores the challenges faced by both the company and its former employees in navigating the aftermath of significant corporate changes.
