Mark Schobinger has filed a proposed class action lawsuit against Twitter Inc. The company allegedly failed to pay its workers millions of dollars in promised bonuses.
- Twitter promised employees 50% of their target bonuses for 2022, both before and after Elon Musk’s acquisition.
- The lawsuit claims that Twitter did not fulfill these bonus payments, resulting in accusations of contract breach.
Former Twitter senior director of compensation, Mark Schobinger, has filed a new class action lawsuit against Twitter Inc. in San Francisco federal court, alleging that the company failed to pay its workers millions of dollars in promised bonuses.
The lawsuit claims that Twitter had assured employees, both before and after Elon Musk’s acquisition of the company, that they would receive 50% of their target bonuses for 2022. However, according to the lawsuit, these payments were never made, leading to accusations of contract breach.
It is worth noting that Twitter no longer has a media relations office. As a result, it did not provide Reuters with an official comment, instead, the request was met with a poop emoji.
Shannon Liss-Riordan, Schobinger’s lawyer, is already representing former Twitter employees in several other lawsuits and around 2,000 individual arbitration cases originating from last year’s mass layoffs. During those times, Musk slashed about 80% of the staff under the guise of cutting costs.
These cases allege that Twitter failed to pay promised severance and targeted female employees and workers with disabilities during the layoffs, among other claims. However, Twitter has denied any wrongdoing.
When talking with CNN about the new class action lawsuit, Liss-Riordan stated “We estimate about a couple thousand employees would have been eligible for the bonuses. While I don’t have an exact number, we expect the amount owed is in the tens of millions.”
The legal challenges faced by Twitter extend beyond employee-related matters. In fact, a number of landlords, vendors, and consultants have also taken Twitter to court over unpaid bills. Admittedly, some of these bills predate Musk.
In Delaware, three former executives including ex-CEO Parag Agrawal also sued Twitter Inc. Agrawal claims that the social media platform went back on an agreement to reimburse more than $1 million in legal fees. The platform incurred these fees while responding to requests from government regulators.
As the lawsuits unfold, including this new class action lawsuit, Twitter will need to address these allegations and defend its position. The outcome of these cases will impact the financial obligations of the company. It will also hurt reputation and relationship with employees, vendors, and consultants.
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