X faces lawsuit over millions in unpaid bonuses
Business
The litigation adds to a heap of legal woes for the social network
(Web Desk) - A federal judge has green lit a lawsuit against X that alleges the company failed to pay annual bonuses worth millions to thousands of employees.
The lawsuit, filed by former head of compensation Mark Schobinger, alleges that X, formerly Twitter, owes over $5 million after assuring a 50% payout of their 2022 annual bonus if they remained during Musk's takeover.
This development represents the latest setback for the social media platform which increasingly faces a mounting number of legal challenges.
LEGAL CHALLENGES: X has allegedly delayed paying out severance and has delayed arbitration by failing to pay court fees, according to the filing—which was made by one ex-Twitter employee's attorney hoping to force X into arbitration.
The process would force both the plaintiffs and X to pay fees, and X's would be considerably larger: roughly $3.5 million for 2,200 cases. A attorney for X is hoping to convince the court that the parties should split the costs.
X is facing numerous lawsuits from former employees, including a separate class action case to do with severance and a case alleging the company discriminated on the basis of sex and race.
And the company has shown a desire to strip away costs in other instances that have seemed to backfire.
In May, X's former public relations firm filed a suit over unpaid bills following a similar suit by Innisfree M&A, a financial services firm that advised the company over Musk's pursuit of the site in 2022. Then, last month, an Australian firm sued X over another stack of unpaid bills.
