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X Corp formerly known as Twitter faces lawsuit over unpaid bonuses

Updated: Feb 3

X Corp, the company formerly known as Twitter Inc., is being sued by a former employee for failing to pay millions of dollars in bonuses that it had promised to its staff. Mark Schobinger, who was the senior director of compensation at X Corp, filed a breach of contract lawsuit in June 2023, alleging that the company reneged on its offer to pay 50% of the 2022 target bonuses to its employees.

Schobinger claims that X Corp made the promise both before and after it was acquired by billionaire Elon Musk in 2022, but never fulfilled it. He says that he was entitled to a bonus of $1.2 million, but received nothing from the company. He is seeking damages and interest from X Corp, as well as a declaration that the company violated its contractual obligations.

More recently, U.S. District Judge Vince Chhabria denied X Corp's motion to dismiss the case, ruling that Schobinger had plausibly stated a claim under California law. The judge said that X Corp's offer to pay the bonuses became a binding contract once Schobinger did what the company asked him to do, such as staying with the company after the acquisition and completing certain tasks. He also said that X Corp's arguments that the promise was not a contract and that Texas law should apply were unfounded.


X Corp, which no longer has a media relations office, did not immediately respond to a request for comment. The company has been hit with numerous lawsuits by former employees and executives since Musk bought it and cut more than half of its workforce. The lawsuits allege that X Corp discriminated against older employees, women and workers with disabilities, and failed to give advance notice of mass layoffs. The company denies any wrongdoing.


X Corp, which changed its name from Twitter in 2023, is a social media platform that allows users to post short messages, images and videos. The company has been experimenting with new features, such as allowing users to pay for premium content and creating a decentralized network of nodes. Musk, who is also the CEO of Tesla and SpaceX, has said that he wants to make X Corp a platform for "the future of humanity".


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(1) Twitter violated contract by failing to pay millions in bonuses, judge .... https://www.nbcnews.com/news/us-news/twitter-violated-contract-pay-millions-bonuses-us-judge-rules-rcna131034.

(2) Twitter violated contract by failing to pay millions in bonuses, U.S .... https://www.cnbc.com/2023/12/23/twitter-violated-contract-by-failing-to-pay-millions-in-bonuses-us-judge-rules.html.

(3) Twitter violated contract by failing to pay millions in bonuses, U.S .... https://bing.com/search?q=X+formerly+known+Twitter+is+being+sued+for+failing+to+pay+staff+millions+in+annual+bonuses.

(4) Judge rules Twitter, now X, breached contract by blocking millions of .... https://thehill.com/regulation/court-battles/4375341-judge-rules-twitter-breached-contract-missing-pay-bonuses/.

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