A US federal court has ruled that social media company X (formerly called Twitter) actually violated contracts by failing to pay annual performance bonuses it orally promised its workers.
Africa Today News, New York reports that the breach-of-contract lawsuit was insituted by former employer Mark Schobinger in June.
The lawsuit said Twitter had promised workers a 2022 performance bonus if they stayed with the company through the final possible payout date, which was the first quarter of this year.
The court threw out Twitter’s attempts to have the case dismissed, ruling that Schobinger’s claim of breach of contract under California law was valid.
Read Also: Musk Finally Lifts Political Ad Ban At Rebranded Twitter
‘Schobinger has plausibly stated a breach of contract claim under California law. He alleges that Twitter orally promised to pay each employee a portion of the bonus contemplated,’ wrote US District Judge Vince Chhabria.
‘And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract,’ said the judge.
X can still appeal the court’s decision.
The social network now owned by Elon Musk, is currently facing multiple headwinds, including an EU probe under a law designed to combat disinformation and hate, criticism of the platform’s response to recent rioting in Dublin, and an exodus of big-name advertisers.
Africa Today News, New York reports that the company is now worth less than half of the $44 billion he paid for it in October 2022, according to internal documents sent to staff and reported by tech publication The Verge.
Recall that Musk had finally lifted a ban on political ads put in place at Twitter to thwart misinformation before the billionaire bought the platform now called X.
Africa Today News, New York reports that barely one a week after former president Donald Trump made a post at X for the first time since January 2021, possibly deceptive political comments were once again welcomed there.
Trump announced his return to the platform that served as his favourite megaphone throughout his time as president by posting his police mugshot following his detention in Georgia.