In a recent ruling, a US federal court found that Twitter, now rebranded as X, violated contractual agreements by failing to fulfill annual performance bonuses promised to its employees.
The breach-of-contract lawsuit, initiated by former employee Mark Schobinger in June, asserted that Twitter had orally assured workers a 2022 performance bonus contingent on their continued employment until the first quarter of this year.
Despite Twitter’s attempts to dismiss the case, the court upheld Schobinger’s claim of breach of contract under California law.
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US District Judge Vince Chhabria stated, “Schobinger has plausibly stated a breach of contract claim under California law. He alleges that Twitter orally promised to pay each employee a portion of the bonus contemplated, and by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract.”
While X has the option to appeal the court’s decision, the social media platform, now owned by Elon Musk, faces various challenges.
These include an EU probe under legislation combating disinformation and hate, criticism of its response to recent unrest in Dublin, and a notable departure of major advertisers.
Internal documents indicate that the company’s current value is less than half of the $44 billion Musk paid for it in October 2022, as reported by tech publication, The Verge.
Credit AFP