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Twitter Breached Its Contract By Not Fulfilling Bonus Payments.

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Twitter Breached Its Contract By Not Fulfilling Bonus Payments.

(CTN News) – In a significant legal development, a federal judge ruled on Friday that X Corp, formerly known as Twitter, had violated contracts by neglecting to fulfill its promise of paying millions of dollars in bonuses to its employees.

The ruling came in response to a lawsuit filed by Mark Schobinger, who held the position of senior director of compensation at Twitter. Schobinger’s lawsuit, filed in June, alleged that Twitter had committed a breach of contract by failing to deliver on its commitment to provide employees with 50% of their 2022 target bonuses.

U.S. District Judge Vince Chhabria, presiding over the case, denied Twitter’s motion to dismiss the lawsuit, asserting that Schobinger had presented a plausible claim of breach of contract under California law.

Judge Chhabria emphasized that once Schobinger had fulfilled all the requirements set forth by Twitter, the offer to pay him a bonus became a legally binding contract. Consequently, Twitter’s failure to honor this contract by withholding the promised bonus was deemed a violation.

The ruling carries significant implications for X Corp, as it not only highlights the company’s failure to fulfill its contractual obligations but also underscores the legal consequences of such actions.

X Corp, which no longer maintains a media relations office, has yet to respond to requests for comment on the matter.

This ruling serves as a reminder to companies of the importance of upholding contractual agreements with their employees. It also underscores the potential legal ramifications that can arise from failing to honor such commitments.

As the case progresses, it will be interesting to see how X Corp responds and whether this ruling will have broader implications for the company’s compensation practices.

According to Courthouse News, Twitter’s legal team contended that the company had only made an oral promise which did not constitute a contract.

They further argued that the case should be governed by Texas law. However, the judge ruled that California law would be applicable and dismissed Twitter’s opposing arguments.

Ever since X was acquired by Musk and underwent significant downsizing, the company has faced numerous lawsuits from former employees and executives.

These lawsuits encompass a variety of allegations, such as age and gender discrimination, as well as failure to provide prior notice of large-scale layoffs. X, on the other hand, denies any wrongdoing.

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