Elon Musk's media company X Corp has been hit by a legal storm recently, with a US judge ruling that it cannot pay employees' bonuses, adding to the company's challenges.
Elon Musk's media venture X Corp suffered a legal setback as a federal judge ruled on Friday that Twitter (now X Corp) breached its contract by not delivering on bonuses promised to employees. Notably, Twitter's former senior director of compensation, Mark Schobinger, filed a lawsuit alleging that the social media giant breached its contract by not delivering on the promised 2022 target bonus after Musk was acquired.
At the same time, the ruling brings more legal challenges to X Corp, which has already faced several lawsuits since Musk took over.
X Corp faces legal action for non-payment of bonuses
Elon Musk’s push into the media industry faces another hurdle as a federal judge ruled against X Corp, formerly known as Twitter, in a lawsuit filed by former executive Mark Schobinger. The judge found that Twitter breached its contract by failing to pay millions of dollars in promised bonuses to employees, deepening X Corp’s legal woes, Reuters reported.
Meanwhile, Mark Schobinger filed a lawsuit in June alleging Twitter breached its contract by not delivering a promised bonus, an allegation that caught the attention of U.S. District Judge Vince Chhabria. Notably, the judge denied Twitter’s motion to dismiss the case, saying Schobinger had brought a breach of contract claim under California law.
The judge said Twitter’s verbal promise to pay employees 50% of their target bonuses for 2022 became a binding contract under California law once Schobinger performed his duties. In addition, the ruling rejected Twitter’s argument that the promise was only verbal and not a contract, and emphasized that California law governs the case.
Legal disputes escalate
X Corp has found itself embroiled in a series of legal battles under Elon Musk’s leadership. Schoebinger’s lawsuit adds to a long list of grievances that include allegations of age and gender discrimination and allegations of inadequate notice of mass layoffs.
At the same time, the ruling not only represents a legal setback for X Corp, but also reveals the complexity of Musk's acquisitions and the legal consequences faced by the companies he leads. As the legal dispute intensifies, X Corp seems to be in trouble in the media.
The outcome of the entire case will have an important impact on the future development of X Corp. The company needs to respond to legal challenges while strengthening internal management to ensure compliance with contracts and legal provisions. For Musk, this is also an important legal test, as he needs to handle the company's legal affairs while maintaining his focus and leadership on the business.
In this legal storm, X Corp needs to review and improve its operations and management methods to ensure future success and sustainable development. This case also reminds other companies of the importance of contract performance and employee rights protection. #马斯克 #法律诉讼