A federal judge has rejected X, formerly known as Twitter, dismissing a lawsuit alleging its failure to pay promised bonuses. The decision comes in response to allegations that after Elon Musk acquired X in October 2022, it failed to honor its commitment to give employees annual bonuses.
In June 2023, former Senior Director of Compensation Mark Schobinger filed a lawsuit on behalf of all former and current X employees who had their 2022 bonuses withheld.
US District Judge Vince Chhabria declared last week that Schobinger's case against X was plausible, allowing it to proceed. Chhabria asserted that Twitter's offer to pay a bonus constituted a binding contract under California law, according to CNN.
The social media company had sought to dismiss the case, arguing that an oral promise should not be legally binding and that the trial should be conducted in Texas. However, Judge Chhabria ruled that California law applies when determining the enforceability of contracts.
C.E.O. of Tesla, Chief Engineer of SpaceX, and C.T.O. of X Elon Musk speaks during the New York Times annual DealBook summit on November 29, 2023, in New York City.
The lawsuit detailed concerns raised by employees about their compensation and annual bonuses following Elon Musk's announcement of the acquisition in April. In the months leading up to the acquisition's completion, X executives assured employees that 2022 bonuses would be paid at 50% of the target, with these promises reiterated after Musk's takeover.
Despite these assurances, X allegedly failed to fulfill its commitment to pay bonuses, leading to Schobinger's departure from the company in May due to "Twitter's reneging on various promises it had made to employees, including its failure to pay promised bonuses," as stated in the complaint.
Elon Musk Slams President Biden on Christmas Day
Elon Musk spent his Christmas vacations denouncing US President Joe Biden's treatment of Tesla, including his absence from the EV summit and his recognition of GM as an electric vehicle leader.
"Most of the Democratic Party is controlled by the unions - they carry far more weight than the environmentalists - and Biden particularly so (he gladly admits it)," Musk posted on X on Christmas Day, as quoted by Business Insider. Musk noted that Biden said, "The UAW elected me." The tech tycoon also implied that Tesla was excluded from the EV meeting before Musk's inflammatory words.
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The tech mogul regularly cites Tesla's absence from the 2021 EV conference as the cause of his conflict with President Joe Biden. Musk voiced dissatisfaction with the Biden administration and his desire for a moderate 2024 presidential contender at a recent meeting.
Musk, who previously supported Barack Obama, pledged to vote for GOP nominee Ron DeSantis in November 2022. Musk and Biden did not reply to calls for comment.
No Need to Worry About Tesla Going Rogue
Moreover, Elon Musk commented on a scene from Netflix's "Leave the World Behind." The future scenario shows hacked Tesla Model 3s attacking in full self-driving mode.
The depiction in the hit Netflix film, starring Julia Roberts, raised worries about Tesla's autonomous features, but CEO Elon Musk seemed unfazed. The tech billionaire used the opportunity to emphasize Tesla's post-apocalyptic resiliency.
"Teslas can charge from solar panels even if the world goes fully Mad Max and there is no more gasoline!" Elon Musk wrote on X, as quoted by The Cool Down.
Moreover, Tesla's self-driving capabilities only work while a human is in the car, debunking the idea of an autonomous army of Model 3s.
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