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2023. December 27th – 2:42 p.m
A federal judge has ruled that the claims of X (formerly Twitter) employees who claim the company failed to pay them promised bonuses have merit. As CNN reports, the judge on Friday rejected X’s request to drop his colleagues’ case.
Elon Musk bought Twitter in October 2022, and the employees found out about the change in ownership in April 2022. Management then verbally promised them several times that they would receive half of the planned bonus even if Elon Musk became the new owner. However, the billionaire refused to pay the extra money.
The current lawsuit was filed by a former director, Mark Schobinger, who left X in May, and in his June lawsuit he is suing not only for his own bonus but also for all employees who were promised a year-end bonus.
The company asked the court to dismiss the motion on the grounds that an oral commitment cannot be binding and that the case should be heard in Texas. However, the judge responded that California law governed matters that called into question the enforceability of the contract.
X, which has effectively disbanded its PR team, has yet to respond to media inquiries.
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