U.S. Federal Judge Ruled X (Twitter) Breached its Contract

Reuters reported on Saturday local time that a U.S. federal judge ruled on Friday local time that Musk ’s X (then known as Twitter) breached its contract because it failed to pay a previous Millions of dollars in bonuses promised to employees .

Naijatechnews attached a briefing note : In the month before Musk acquired the company, executives including former CFO Ned Segal “repeatedly” promised employees that they would pay them 50% of 2022 bonus . But with the arrival of Musk, these bonus promises have been delayed.

Mark Schobinger, Twitter’s former senior director of compensation, is the lead plaintiff in this lawsuit. He sued Twitter in June this year.

After denying Twitter’s motion to dismiss the case, a U.S. District Court Judge Vince Chhabria ruled that Schobinger had reasonably stated the breach of contract claim under California law and that he had falls within the scope of Twitter’s “Bonus Program”.

The judge said that if Schobinger complied with Twitter’s demands, Twitter’s offer to pay the bonus would have become a binding contract under California law . By refusing to pay out the previously promised bonus, Twitter breached its contract.

Since Musk acquired Twitter, renamed it “X” and laid off more than half its staff, the company has faced multiple lawsuits from former employees and executives, but X has denied any wrongdoing.