Legal Ruling Against Social Media Company for Bonus Non-Payment

A recent legal ruling stated that a social media company, now referred to as X Corp, breached contracts by not disbursing millions in bonuses to its employees. The lawsuit, brought by Mark Schobinger, a former senior director of compensation at the company, alleged that despite promising employees 50% of their 2022 target bonuses, the payments were never made. The federal judge, Vince Chhabria, denied Twitter's motion to dismiss the case, ruling that Schobinger had a plausible breach of contract claim under California law. According to the judge, the verbal promise constituted a binding contract, and the company's failure to pay the promised bonus was considered a violation of this contract. X Corp, which no longer has a media relations office, did not respond to requests for comment. Twitter's legal team argued that the promise was not a formal contract and that Texas law should apply, but the judge determined that California law was applicable. This legal action adds to a series of lawsuits against X Corp, alleging various wrongdoings since its acquisition by a billionaire and subsequent staff reductions. The company has consistently denied these allegations.