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Judge Rules X Corporation Breached Contracts Over Unpaid Bonuses

Former Twitter employees could sue for millions following a ruling that the company failed to honor its bonus agreements.

  • U.S. District Judge Vince Chhabria ruled that X Corporation, formerly known as Twitter, breached contracts by failing to pay millions in promised employee bonuses.
  • Mark Schobinger, Twitter's former director of compensation, filed the lawsuit after the company refused to pay a bonus he says he was promised.
  • The company argued that it had only made an oral promise, which did not constitute a contract, but the judge dismissed these arguments, ruling that California law was applicable.
  • If the lawsuit and similar cases are successful, X Corporation could be forced to pay out millions to Schobinger and other former employees.
  • Since being acquired by Elon Musk, X Corp has been served with multiple lawsuits from former employees, alleging everything from discrimination to failure to provide advance notice of mass layoffs.
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