TECH - Elon Musk's X Breached Contracts By Failing To Deliver Promised Bonuses Rules Judge | Benzinga
A U.S. federal judge has ruled that X Corp, previously known as Twitter, failed to honor contracts by withholding millions in promised employee bonuses.
What Happened: U.S. District Judge Vince Chhabria made the ruling in response to a case filed by Mark Schobinger, the ex-senior director of compensation at Twitter, reported Reuters.
Schobinger claimed that the social media giant had pledged to pay 50% of 2023 target bonuses to staff before and post the takeover by Elon Musk but reneged on its promise.
“Twitter’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, Twitter violated that contract,” said Judge Chhabria.
The company argued that it had only made an oral promise, which did not constitute a contract, and suggested that Texas law should preside over the case. However, the judge dismissed ...