AceBreakingNews – Twitter has violated contracts by failing to pay millions of dollars in bonuses that the social media company, now called X Corp, had promised its employees, a US federal judge has ruled.

Ace Press News From Cutting Room Floor: Published: Dec.25: 2023: ABC/wires TELEGRAM Ace Daily News Link https://t.me/+PuI36tlDsM7GpOJe

Mark Schobinger, who was Twitter’s senior director of compensation before leaving Elon Musk’s company in May, sued Twitter in June, claiming breach of contract.

Mr Schobinger’s suit alleged that before and after Mr Musk bought Twitter last year, it promised employees 50 per cent of their 2022 target bonuses but never made those payments.

In denying Twitter’s motion to dismiss the case, US District Judge Vince Chhabria ruled that Mr Schobinger plausibly stated a breach of contract claim under California law and he was covered by a bonus plan.

“Once Schobinger did what Twitter asked, Twitter’s offer to pay him a bonus in return became a binding contract under California law,” the judge wrote.

“And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract.”

Twitter’s lawyers argued that the company made only an oral promise that was not a contract, and that Texas law should govern the case, according to Courthouse News, which first reported the ruling.

X has been hit with numerous lawsuits by former employees and executives since Mr Musk bought the company and culled more than half of its workforce.

The lawsuits make a range of claims, including that X discriminated against older employees, women and workers with disabilities, and failed to give advance notice of mass lay-offs.

The company denies wrongdoing.

X can still appeal the court’s decision.

The social network is facing multiple headwinds, including an EU probe under a law designed to combat disinformation and hate, criticism of the platform’s response to recent rioting in Dublin, and an exodus of big-name advertisers.

The company is now worth less than half of the $US44 billion ($64.7 billion) Mr Musk paid for it in October 2022, according to internal documents sent to staff and reported by tech publication The Verge.

X no longer has a media relations office.

The company did not immediately respond to a request for comment to its X account outside business hours.

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