Highlights

• Judge rules against X Corp in bonus breach case.
• Schobinger sues X over unfulfilled bonus promises.
• California law applied, dismissing Texas law argument.
• Ruling sets precedent in employee compensation law.

The trouble just doesn’t stop for X, formerly known as Twitter. 

The company is now in the midst of a legal setback as a U.S. District Judge has ruled against the company in a breach of contract case.

The case, brought forward by Mark Schobinger, Twitter’s former senior director of compensation, and reported by Reuters, centres around unpaid bonuses promised to employees which range in the millions of dollars.

Background of the Case

Mark Schobinger left X Corp in May and subsequently filed a lawsuit in June, claiming the company breached its contract.

Schobinger asserted that X, both before and after its acquisition by Elon Musk, had committed to paying employees 50% of their target bonuses for 2022.

However, these payments were allegedly never made.

In a significant decision, U.S. District Judge Vince Chhabria denied X’s motion to dismiss the case, stating that Schobinger had convincingly presented a breach of contract claim under California law.

The judge’s ruling emphasized that Schobinger was entitled to the bonus under a plan, and X’s failure to fulfill this promise constituted a breach of contract.

“Once Schobinger did what Twitter asked, Twitter’s offer to pay him a bonus in return became a binding contract under California law,” wrote Judge Chhabria.

Arguments Presented

X Corp’s legal team contended that the company had only made an oral promise, which did not equate to a formal contract.

They argued that Texas law should apply to the case.

However, Judge Chhabria ruled that California law was applicable and dismissed X’s arguments.

X, which no longer maintains a media relations office, did not immediately respond to Reuter’s requests for comment on this matter.

This ruling is an important development in the ongoing legal battles faced by X, and could set a precedent for similar cases involving employee compensation and contractual agreements.

Recent X News

• Video in Spaces: X plans to introduce video to Spaces, aiming to enhance user engagement.
  This feature is expected to launch by the end of the year or early next year, allowing users to interact more dynamically with their audience without relying on third-party platforms​​.
• Alex Jones and Infowars: Conspiracy theorist Alex Jones and his media site Infowars have been reinstated on X following a user poll.
  Jones’ account was previously permanently banned in 2018. The poll saw nearly 2 million votes, with about 70% in favor of restoring his account​.
• Payment Processing License: X is expanding into a payments platform, having recently received licenses for money transmission in South Dakota, Kansas, and Wyoming.
  This brings the total to 12 U.S. states where X can engage in money transfers​​.

FAQs

What is the core issue in the lawsuit filed against X Corp?

The lawsuit centers on X Corp’s alleged failure to pay promised bonuses to its employees, as claimed by the former senior director of compensation, Mark Schobinger.

Despite commitments made both before and after its acquisition by Elon Musk, these bonuses were reportedly not disbursed, leading to a breach of contract case under California law.

Who are the key parties involved in the X Corp bonus dispute, and what are their claims?

Mark Schobinger, the plaintiff, is X Corp’s former senior director of compensation, who argues that the company failed to pay the promised bonuses. X Corp, the defendant, initially contended that the promise was oral and not binding.

The case is overseen by U.S. District Judge Vince Chhabria, who ruled in favor of applying California law, thus supporting Schobinger’s claim.

What was the basis of Judge Chhabria’s decision in favor of the plaintiff against X Corp?

Judge Chhabria found that X Corp had entered into a binding contract under California law by promising to pay bonuses to employees, including Schobinger.

The judge dismissed X Corp’s argument for applying Texas law and emphasized that a promise for compensation, once the employee fulfills their part of the deal, becomes a legally enforceable contract.

What are the main performance issues Google Pixel users face with the X app?

Google Pixel users are encountering several issues with the X app, including slow loading times for content and feed refreshes, challenges in image loading, delayed tweet posting, and slow notification responses.

How has the X team responded to these performance issues?

Fred Lohner, a member of the X mobile development team, has recognized the performance issues.

He is actively engaging with the user community to gather examples and insights for addressing these problems.

Can Google Pixel users contribute to resolving these issues with the X app?

Yes, Google Pixel users experiencing these issues are encouraged to share their experiences and examples with Fred Lohner and the X team, facilitating quicker identification and resolution of the problems.

What is the anticipated timeline for resolving these issues on the X app for Google Pixel users?

While X has not provided a specific timeline for resolving these performance issues, their proactive approach in seeking user feedback suggests they are working towards a solution.

Also Read: X (Formerly Twitter) Is Seeing Unexplained Disappearance of Photos and Links Posted Before 2014

Also Read: X (Formerly Twitter) Users On Google Pixel Phones Are Reporting App Performance Issues

Also Read: EU Launches Formal Investigation into X for Potential DSA Violations