Elon Musk’s X Faces Lawsuit For Allegedly Withholding Staff Bonuses

A federal judge in the United States has affirmed that X, formerly known as Twitter, must respond to a case filed by workers who claim they were not given the incentives they were promised.

It was learnt that allegations have it that X failed to provide yearly bonuses to employees after being acquired by billionaire Elon Musk in October 2022, despite prior commitments made by the executives of the renowned micro-blogging platform.

A class-action lawsuit was launched in June 2023 on behalf of all present and former X employees who were not paid their bonuses for 2022 by a former senior director of compensation at X, Mark Schobinger.

In a ruling on Friday, US District Judge Vince Chhabria stated, “Twitter’s offer to pay him a bonus in return became a binding contract under California law.”

According to the complaint, firm leaders frequently informed employees in the time running up to Musk’s acquisition of X that 2022 bonuses would be distributed at 50% of the target.

Even after Musk’s acquisition was completed, these assurances were repeated.

Despite these guarantees, X reportedly failed to deliver on the promised bonuses, which prompted the complaint.

Schobinger left in May, alleging “Twitter’s reneging on various promises it had made to employees, including its failure to pay promised bonuses,” according to the complaint.