In recent events, Twitter, which is now called X Corp, had a
major judicial defeat. There was a federal judge who said that the social media
giant broke contracts by not giving its workers the millions of dollars in
bonuses that were promised.
Mark Schobinger, who used to be Twitter's senior head of
pay, sued the company for breach of contract and got this decision.
Schobinger's case brought up the fact that Twitter promised to pay workers 50%
of their 2022 goal bonuses before and after Elon Musk bought the company, but
that promise was never kept.
The choice made by U.S. District Judge Vince Chhabria hurt
Twitter's case. He said Schobinger's actions, which were asked of him by
Twitter, created a legally binding agreement under California law. He said
Twitter broke this agreement by not paying the promised bonus. The company said
that there was only an oral promise and that Texas law should apply. The judge
said that California law should apply instead.
This decision is another one that X Corp has had to deal
with in court since Musk took over the company and cut its staff by more than
half. A number of cases have been brought against the company, claiming
discrimination against older workers, women, and disabled workers, as well as
failing to give adequate warning of mass layoffs. The company has said that it
did nothing wrong in these situations.
The situation at Twitter is typical of a larger trend in the
tech industry: companies are being closely watched for how they hire people and
follow through on their contracts. This case is a good lesson of how important
it is to follow through on promises and the possible legal consequences of not
doing so.
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