Elon Musk Did Not Pay X Workers the Bonuses He Promised, Finds Judge

Billionaire Elon Musk is in even more trouble, and he may now be heading to a court battle after not paying workers on X, formerly Twitter, the bonuses he previously promised.

The social media company, which was bought by Musk in October 2022, was accused of not paying annual bonuses to staff after he took over the company. This is despite executives from then-Twitter repeatedly assuring workers that they will be given bonuses.

According to CNN, the lawsuit against the Elon Musk-owned social media giant was filed in a San Francisco federal court by Mark Schobinger, X's former senior director of compensation. He filed it last May, and he is seeking class-action status for former and current X employees who were not paid their 2022 bonuses.

Musk was then given even more bad news when a federal judge in California ruled that Schobinger's case against X was plausible and allowed it to move forward.

"Twitter's offer to pay him a bonus in return became a binding contract under California law," wrote US District Judge Vince Chhabria in his ruling on Friday. The company had previously tried to have the lawsuit dismissed, arguing that an oral promise should not be binding and that the case should be heard in Texas.

However, the judge shot their motion to dismiss down, saying that California law applies in matters questioning whether a contract can be enforced. "Once Schobinger did what Twitter asked, Twitter's offer to pay him a bonus in return became a binding contract under California law. And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract," concluded the judge.

Elon Musk and X Also Facing Lawsuit from Twitter Investors

That lawsuit from current and former X employees is not the only legal problem that Musk and the company are facing. A few weeks ago, a federal judge advanced a lawsuit from investors of the social media platform.

These investors claimed they suffered losses when they sold their shares on Twitter after Elon Musk claimed that the social media platform "has a major issue with fake accounts and that he could wiggle out of the deal because of it."

The Hollywood Reporter noted that US District Judge Charles Breyer found several of the billionaire's statements were false or misleading. This is in part because he waived due diligence.

Elon Musk Is Suing Anti-Hate Groups Over Exposing X's Inaction Over Racist Posts

Meanwhile, as he is getting sued by investors and employees, Musk is also suing anti-hate groups and media watchdogs over the spread of misinformation on his platform. However, one of these groups, The Center for Countering Digital Hate, remains defiant.

"We will not be cowed by bullies," said the group in a statement after Musk sued them. The group revealed that 98% of 200 tweets that it flagged to X were still posted on the platform after two weeks. This came after a surge in social media disinformation and hate speech related to the Israel-Hamas war.

This article is owned by Latin Post.

Written by: Rick Martin

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