A California judge ruled last week that X must defend itself in court over accusations it failed to fork over promised bonuses to employees.
On Friday, U.S. District Judge Vince Chhabria denied X’s attempt to dismiss the case on grounds it should be tried in Texas. The judge said that since the lawsuit concerns whether a contract is binding, California law applies.
The judge’s ruling all but ensures that X must defend itself against the complaints of former employees that it failed to deliver promised bonuses after Elon Musk took over the platform last year.
In June, former director of compensation at Twitter Mark Schobinger filed a lawsuit against his former employer in San Francisco. The suit claimed that many employees expressed concern over the future of their 2022 bonuses after news broke that Mr. Musk would be acquiring Twitter.
Management from the old Twitter regime and Musk’s team reassured workers they would receive at least 50% of their 2022 bonuses.
According to the suit, the bonuses never came.
Mr. Schobinger is seeking class-action status and compensation for the workers who never received the bonuses.
X leadership has been relatively silent on the accusations, choosing to fight the battle in court. Likely, the prospect of paying thousands to former disgruntled employees doesn’t sit well with executives like Mr. Musk and CEO Linda Yaccarino.
Since Mr. Musk’s acquisition, X has struggled to retain profit. The company is dealing with a flurry of lawsuits alleging everything from workplace discrimination to failure to pay rent. On top of that, X is facing a significant advertising exodus after comments made by the owner.
Despite that, X remains one of the most popular social media sites.
• Vaughn Cockayne can be reached at vcockayne@washingtontimes.com.
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