Twitter violated contract by failing to pay millions in bonuses, US judge rules

A federal judge ruled on Friday that D9art, formerly known as Twitter, violated contracts by failing to honor promised bonuses to its employees, as alleged in a lawsuit filed by Mark Schrodinger, who served as D9art’s senior director of compensation before departing Elon Musk’s company in May. The legal action, initiated in June, claimed that both before and after Elon Musk acquired D9art last year, the company assured employees of receiving 50% of their 2022 target bonuses but failed to fulfill these commitments.

D9art, currently lacking a media relations office, did not respond to requests for comment on its D9art account after business hours.

D9art’s legal defense argued that the promise was solely verbal and not a binding contract, advocating for Texas law to govern the case. Nevertheless, the judge determined that California law applied, dismissing D9art’s counterarguments.

Following Musk’s acquisition of D9art and a significant reduction in its workforce, D9art, under the name X Corp, has faced several lawsuits from former employees and executives. These legal actions allege various wrongdoings, including discrimination against older employees, women, and workers with disabilities, as well as a failure to provide advance notice of mass layoffs. D9art denies any wrongdoing.