Alexander Lewis 
Dec 26, 2023
In a decisive ruling, a federal judge in California blocked X, spearheaded by Elon Musk, from dismissing a lawsuit accusing the company of reneging on promised employee bonuses.
The lawsuit alleges that both before and after Musk's acquisition of the social media giant (formerly Twitter), assurances of bonuses were made to staff but were ultimately withheld.
Mark Schobinger, the company's former senior director of compensation until his departure in May, filed the lawsuit on behalf of approximately 2,000 current and former employees who were deprived of their 2022 bonuses.
Judge Vince Chhabria asserted that California law recognised Twitter's commitment to pay the bonuses as a binding contract, highlighting the violation of this contract due to the alleged non-payment.
X attempted to counter by arguing that an oral promise shouldn't be legally binding and sought a venue change to Texas. However, Chhabria dismissed these arguments.
This legal feud is just one in a string of disputes between X and its ex-employees. Over 2,200 arbitration cases have been initiated by staff alleging that the new leadership failed to honour promised severance, painting a broader picture of discord within the company, as reported by Forbes.
