(ConservativeFreePress.com) – In a recent legal development, a federal judge made a significant ruling against Twitter, now renamed X, for breaching its contractual obligations to its employees. This judgment focused on the company’s failure to honor its commitment to pay millions in promised bonuses. The promise of these bonuses was made twice – once before and once after the high-profile acquisition of the company by tech magnate Elon Musk in 2022. However, despite these assurances, the payments were never made.
The lawsuit was initiated by Mark Schobinger, who previously held a senior position in the company’s compensation department. Schobinger’s legal action, filed in June, brought to light the non-payment of the promised bonuses. In his legal opinion, District Judge Vince Chhabria stated that by asking Schobinger to fulfill certain tasks and promising a bonus in return, Twitter entered into a legally binding contract under California law. The company’s failure to pay the promised bonus, as alleged, was therefore a breach of this contract.
Twitter’s defense hinged on the claim that the bonus agreement was a mere verbal promise and, as such, should not be enforceable under Texas law. However, Judge Chhabria applied California law in this case, which recognized the agreement as legally binding. He dismissed Twitter’s arguments, asserting their failure to meet the legal standards.
Since Musk’s takeover, X has been embroiled in a series of legal challenges. These include not only disputes over compensation but also issues related to wrongful termination and discrimination claims. This ruling adds another layer to the ongoing legal complexities faced by the company under its new ownership.
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