Judge Condemns Musk and “X” for Bonus Failure in Lawsuit Showdown

Elon Musk’s “X” facing lawsuit over unpaid bonuses

A lawsuit against “X,” the company owned by Elon Musk, is moving forward as a judge has refused to toss the case out. The lawsuit was filed by Mark Schobinger, a former senior director of compensation at Twitter, who claims that Musk’s company failed to deliver millions of dollars in promised bonuses to employees.

According to The New York Post, the lawsuit seeks $5 million on behalf of Schobinger and 2,000 current and former “X” employees. The suit claims that senior company officials made verbal promises both before and after Musk acquired Twitter, stating that employees would be paid half of their 2022 bonuses as long as they stayed with the company through the first quarter of this year. However, the payments were never made, leading to the breach of contract claim.

US District Court Judge Vince Chhabria ruled in favor of Schobinger, stating that his complaint met the requirements for a breach of contract claim under California law. The judge also agreed that Schobinger was covered by a bonus plan, and that “Twitter’s offer to pay him a bonus in return became a binding contract under California law” once he had fulfilled his part of the agreement.

Twitter argued that the oral agreement should not be valid and that Texas law should apply, but Judge Chharbria disagreed, stating that California law applies to the case and that “Twitter’s contrary arguments all fail.”

This latest legal battle adds to the ongoing controversies surrounding Musk and his companies. Despite the lawsuit, it’s unlikely to put a dent in Musk’s massive fortune, as he remains one of the richest men in the world. However, it does raise questions about the treatment of employees at “X” and their entitlement to promised bonuses.

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