Elon Musk faces a new judicial setback with the social network

2023-12-27 08:00:00

A United States federal court ruled that the social network Twitter, now called X, violated contracts by not paying the annual performance bonuses that he verbally promised to his workers.

The lawsuit for breach of contract was filed in June by former employer Mark Schobinger in California state courts and was considered on Friday by US District Judge Vince Chhabria, of the San Francisco City Court. X can still appeal the decision.

«Schobinger has plausibly presented a claim for breach of contract under California law. It alleges that Twitter verbally promised pay each employee a portion of the bonus considered,” Judge Chhabria stated.

“And by allegedly refusing to pay Schobinger the promised bonus, Twitter violated that contract«, he declared.

The lawsuit against Twitter


The original complaint stated that Twitter had promised workers a bonus for performance in 2022 if they remained with the company until the last possible payment date, which was the first quarter of this year.

The court rejected Twitter’s attempts to dismiss the case and ruled that Schobinger’s breach of contract claim is valid under California law.

The social network, now owned by the tycoon Elon Musk – also owner of the automotive company Tesla and the aerospace company SpaceX – is currently facing various complications, including a European Union investigationa under a law designed to combat disinformation and hate comments.

The company is now worth less than half of the $44 billion that Musk paid for it in October 2022, according to internal documents sent to staff and disclosed by the technology publication The Verge.

AFP Agency


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