A former manager sued Elon Musk’s Company X (formerly Twitter) because he didn’t receive his bonus payments and was proven right. Musk owes him a sum in the millions.
Why was the lawsuit filed? Even before Elon Musk took over Twitter, the payment of employees’ annual bonuses was linked to certain company goals. Musk is said to have verbally confirmed this regulation again: He promised the employees 50% of their target bonuses from 2022, it is said.
The employees at X (formerly Twitter) met the goals but never received their bonuses. Now a former manager, Mark Schobinger, sued the company and was proven right.
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Musk loses in court and has to pay millions
Why didn’t the company want to pay? In its defense in court, Twitter cited the fact that the agreement was only made verbally. According to Texas law, this did not constitute a legally valid contract.
The company’s lawyers tried to use this legal trick to win the court hearing. However, the judge decided to apply California law because the company’s headquarters are in Silicon Valley. Under California law, oral contracts are possible.
The judge therefore decided to agree with manager Schobinger and ruled against X (formerly Twitter).
How much money do you have to pay? An exact amount is not known, but it is said to be in the millions. The former employee must now be compensated by X.
The company did not comment on the trial or the defeat. Since Musk took over the company, the press department has been disbanded. Musk recently lost 800 million euros in funding.