The decision came in response to a lawsuit filed by Mark Schobinger, Twitter's former senior director of compensation, who alleged breach of contract. Schobinger claimed that, both before and after Elon Musk's acquisition of Twitter last year, the company pledged 50% of employees' 2022 target bonuses but failed to fulfill those commitments.
U.S. District Judge Vince Chhabria, in denying Twitter's motion to dismiss the case, stated that Schobinger had convincingly presented a breach of contract claim under California law and was covered by a bonus plan. According to the judge, Schobinger's compliance with Twitter's requests established a binding contract under California law, and Twitter's alleged failure to pay the promised bonus constituted a violation of that contract.
X, the current name of the company, did not have an immediate response to a request for comment through its X account outside business hours, as it no longer maintains a media relations office.
Twitter's legal defense contended that the promise made by the company was oral and not a contractual agreement, advocating for Texas law to govern the case. However, the judge determined that California law applied and dismissed Twitter's contrary arguments.
Since Elon Musk acquired the company and significantly reduced its workforce, X has faced multiple lawsuits from former employees and executives. Allegations range from age and gender discrimination to failure to provide advance notice of mass layoffs. X denies any wrongdoing in these cases.
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