X Corp., formerly known as Twitter, has been hit with a federal, multi-million-dollar lawsuit alleging that the company failed to pay its employees bonuses that it promised to them. This lawsuit comes after billionaire Elon Musk took over the company in 2022 and cut more than half of the company’s workforce.
As expected, X Corp. moved to dismiss the lawsuit, arguing that the company’s alleged promises to pay the bonuses did not form a binding contract under applicable law. The federal court, however, rejected the company’s argument, holding that the employees stated a breach of contract claim under the law.
This case is a reminder that employers must be ever careful in promising workers bonuses and that promises once made can often bind an employer in a court of law – and in the court of public opinion.
For more information on this lawsuit and worker’s bonuses, please contact us at info@mnklawyers.com.
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