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Former and current employees sue Twitter, accusing execs of failing to pay 'tens of millions of dollars' in bonuses

Jun 21, 2023, 20:06 IST
Business Insider
Elon Musk and Twitter's San Francisco headquarters.LUDOVIC MARIN/POOL/AFP via Getty Images; Tayfun Coskun/Anadolu Agency via Getty Images
  • Twitter is being sued by former and current workers over bonus payments.
  • In a class-action suit, they said they were not paid 50% of their 2022 bonuses.
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Twitter has added another lawsuit to its growing pile.

This time the lawsuit is a class-action filed by Mark Schobinger on behalf of himself and other current and former Twitter employees. The lawsuit alleged employees were not paid a proportion of their 2022 bonuses, despite repeated promises from top executives.

It was alleged in court documents that employees were promised 50% of their 2022 bonus by execs, including Ned Segal, the company's former chief financial officer. Schobinger, who was formerly Twitter's senior director of compensation, claims in the suit that these assurances were made both before and after Elon Musk acquired the company in October.

However, in the first quarter of 2023 when the bonuses were due to be handed out, Twitter refused to pay them to employees who remained at the company, the suit alleged. Schobinger, who has left Twitter, said he turned down calls from recruiters and companies regarding other work opportunities because of the promised bonus.

In a statement shared with Insider an attorney for the plaintiffs, Shannon Liss-Riordan said the bonuses Twitter owed amounted to "tens of millions of dollars."

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She said: "We estimate about a couple thousand employees would have been eligible for the bonuses."

Representatives for Twitter did not respond to Insider with a comment addressing the claims made in the lawsuit.

Lawsuits against the social-media company have been piling up since Musk's takeover. The billionaire's erratic leadership has led him to stop paying rent for several offices and lay off thousands of employees.

Last December, Musk also began releasing thousands of internal documents as part of his Twitter Files project. One former executive said, however, that he and other Twitter employees had been harassed over the release of the files.

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