Elon Musk’s X, accused of withholding bonuses promised to staff, will have to face a court battle

Elon Musk’s X, accused of withholding bonuses promised to staff, will have to face a court battle

technology By Dec 25, 2023 No Comments

Elon Musk’s X Accused of Withholding Promised Staff Bonuses

In a recent lawsuit filed in a San Francisco federal court, X, formerly known as Twitter, is accused of failing to honor its commitment to pay out annual bonuses to its employees after the October 2022 acquisition by billionaire Elon Musk.

Legal Battle Looms for X

A federal judge has denied X’s motion to dismiss the case, ruling that the lawsuit brought forward by Mark Schobinger, a former senior director of compensation at X, is plausible and can proceed. The lawsuit seeks class action status for employees who did not receive their 2022 bonuses.

The Allegations Against X

According to the lawsuit, following Elon Musk’s acquisition of X last April, employees voiced concerns about the fate of their compensation and annual bonuses post-acquisition. Despite repeated assurances from company executives, X allegedly failed to fulfill its promise to pay out the 2022 bonuses.

Understanding the Legal Perspective

US District Judge Vince Chhabria stated that Twitter‘s offer to pay bonuses becomes a binding contract under California law, allowing the case to move forward. Despite X’s arguments, the judge ruled that California law applies in matters questioning the enforcement of a contract.

Current Status and Next Steps

Even with the absence of a public relations team, X did not respond to CNN’s request for comment regarding the lawsuit. As the legal battle unfolds, it remains to be seen how X will address the accusations brought forward by its former employees.

The Impact on Employees and Company Image

X’s failure to honor its commitments not only affects the impacted employees but also raises questions about the company’s integrity. The alleged breach of trust may tarnish X’s image and impact its relationships with current and potential employees.


The unresolved dispute between X and its former employees regarding the non-payment of promised bonuses following the company’s acquisition by Elon Musk presents a significant legal and reputational challenge for X. With the lawsuit allowed to proceed, the company faces a critical juncture in restoring the trust of its workforce and protecting its corporate image.

Source: mercurynews

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