In a major legal blow, X Corp, formerly Twitter, has been ordered by a federal judge to face a lawsuit alleging the company breached contracts by withholding millions of dollars in bonuses promised to its employees. The lawsuit, filed by former senior director of compensation Mark Schobinger, claims X failed to pay out the promised 50% of 2022 target bonuses, despite assurances made both before and after Elon Musk's acquisition of the company.

Key Highlights:

• Unpaid Bonuses: Schobinger's lawsuit alleges X reneged on its contractual obligation to pay employees 50% of their 2022 target bonuses, totaling millions of dollars.
• California Law Applies: The judge ruled that California law, not Texas law as argued by X, governs the case, strengthening Schobinger's claims.
• Part of Pattern: This lawsuit is one of several legal challenges X faced since Musk's takeover, including allegations of discrimination and wrongful termination.

Detailed Breakdown:

Breach of Contract: Schobinger claims X made binding promises to employees regarding bonuses, both orally and through written documentation. He argues that fulfilling his job duties constituted his acceptance of the offer, creating a legally enforceable contract. The judge agreed, finding Schobinger's claims "plausible" under California law.

Texas Law Argument Rejected: X argued that Texas law, with its more favorable employer-leaning provisions, should apply to the case. However, the judge found California's connection to the alleged contract stronger, citing factors like Schobinger's California employment and the bonus plan's creation before the company's relocation to Texas.

Wider Pattern of Lawsuits: This lawsuit adds to a growing list of legal challenges X faces since Musk's acquisition. Former employees have filed numerous suits alleging discrimination against older workers, women, and individuals with disabilities, as well as lack of proper notice for mass layoffs. X denies all wrongdoing in these cases.

The outcome of this lawsuit could have significant implications for X's future employee relations and potentially set a precedent for similar cases against the company.