Home News X Violated Contracts by Withholding Bonuses — US Judge Rules
News

X Violated Contracts by Withholding Bonuses — US Judge Rules

647

According to Courthouse News, which first reported the News, a federal judge ruled that social media platform X, formerly known as Twitter, violated contracts by failing to pay millions of dollars in bonuses it had orally promised its employees.

In a lawsuit filed by Mark Schobinger, former senior director of compensation for Twitter, the court found that X breached its contract with Schobinger and other employees.

According to Schobinger, X failed to pay a portion of their 2022 bonuses due in the first quarter of 2023, despite repeated promises from senior executives at the company. 

The bonuses were to be paid to employees who stayed with the company until the first quarter of 2023.

The judge, Vince Chhabria, ruled that California law governs the case and that X’s contrary arguments fail. Schobinger’s claim of breach of contract under California law was valid, and he was covered by a bonus plan.

“Once Schobinger did what X asked, X’s offer to pay him a bonus in return became a binding contract under California law, and by allegedly refusing to pay Schobinger his promised bonus, X violated that contract.”

X’s lawyers argued that the promise was only oral and not a contract and that Texas law should govern the case. However, the judge ruled that California law governs the case and that X’s arguments fail.

This ruling comes as X faces multiple lawsuits from former employees and executives since Elon Musk acquired the company.

Read: Wike Warns Against City Plan Violators

About The Author

Related Articles

News

Burkina Faso Cuts Four Public Holidays to Boost State Revenues

Burkina Faso’s Council of Ministers has approved a new bill that eliminates...

News

Hong Kong Emerges as New Hub for African Political Money Laundering Schemes, Western Banks Complicit

A growing body of evidence suggests that Hong Kong, a prominent global...

NewsSports

Outrage As AFN, NSC Officials Outnumber Athletes At World Championships Amid Relay Failure And Ofili’s Exit To Turkey

Nigeria’s participation at the 2025 World Athletics Championships in Tokyo is facing...

News

Burkina Faso Abolishes Visa Fees For African Travellers To Boost Integration

Burkina Faso has announced the abolition of visa fees for all African...