Social network: X was sued for not paying the bonuses promised to employees

2023-12-23 12:05:00

Elon Musk and the X and Twitter logosFoto: Shutterstock

A former employee of the group, Mark Schobinger, sued the platform in June for breach of contract, arguing that Twitter had promised its employees bonuses for 2022 if they stayed with the company bought by Elon Musk until the first quarter of 2023. the deadline for this payment.

X attempted to have this claim dismissed, but the courts refused, holding that the suit and breach of contract claim were valid under California law.

“Schobinger has filed a breach of contract claim that is valid under California law. He alleges that Twitter verbally promised to pay each employee a portion of their expected bonus,” Judge Vince Chhabria wrote. “And by refusing to pay Schobinger the promised bonus, Twitter breached that contract,” the judge said.

The social network can appeal the court’s decision.

Now owned by Elon Musk and renamed X, the group is facing a number of difficulties, including a Brussels investigation into online misinformation and hate and an exodus of high-profile advertisers.

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

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