Twitter Inc., now known as X Corp, has reportedly attempted to persuade a U.S. Federal Judge to invalidate an ongoing lawsuit brought forward by its current and former employees. The litigants are claiming that the social media platform has denied them their anticipated 2022 bonuses, breaking an explicit assurance which had ensured the contrary. This case was discussed in a federal court on Thursday.
According to the lawsuit, the social media giant and its executives had promised workers that they would receive 50% of the targeted amounts in the cash performance bonus plan. However, despite this promise, Twitter employees claim this pledge was not honored.
The company, on the other hand, argues that the bonus plan is discretionary, thereby indicating that the bonus amounts that workers receive can fluctuate. Additionally, Twitter points out that any employee can be terminated at any time, another factor potentially influencing bonus payments.
Judge Vince Chhabria of the U.S. District Court for the Northern District of California was reported to harbor doubts concerning these assertions by X Corp. Seemingly, the outcome of this suit, whether it is dismissed or progresses, will hinge on his deliberations on these points.
Reflecting on the case, the lawsuit appears seemingly straightforward: employees claim they were promised bonuses that they ultimately did not receive. However, the crux of the matter, which will most likely dictate the case’s progression, lies in whether these bonus payments were, in reality, guaranteed or discretionary.