Social network X (formerly Twitter) breached its contractual obligations by failing to pay the annual performance bonuses it had verbally promised to its employees, a US federal court ruled on Friday, AFP reported.
In June, a former employee of the group, Mark Schobinger, sued the platform for breach of contract, alleging that Twitter promised its employees bonuses for 2022 if they stayed with the company, bought by Elon Musk, through the first quarter of 2023. this payment
X sought to dismiss this claim, but the courts refused, holding that the claim and breach of contract claim were valid under California law.
“Schobinger has filed a breach of contract claim that is valid under California law. It alleges that Twitter made an oral promise to pay each employee a portion of the expected award,” Judge Vince Chabria 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.
The group, now owned by Elon Musk and renamed X, faces a number of challenges, including an investigation in Brussels into online misinformation and hate speech and the exodus of high-profile advertisers.
According to internal documents sent to employees and reported by tech publication The Verge, the company is now worth less than half of the $44 billion Elon Musk paid in October 2022 to acquire it.
Source: Hot News
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