Breach of Contract Claims Against Elon Musk Can Proceed

Back in June, CNN's Catherine Thorbecke reported that Twitter failed to pay out bonuses to "a couple thousand" employees after being acquired by Elon Musk (represented at right).  The complaint alleged that the employees were promised bonuses at the rate of 50% of the target, and those promises were repeated after Mr. Musk's acquisition of the company.  

On Christmas day, Catherine Thorbecke posted a follow up report (I hope you gave yourself the day off for New Year's, Catherine!) noting that U.S. District Judge Vince Chhabria denied Twitter's motion to dismiss former employee Mark Schobinger's breach of contract claim.  The court "reluctantly" granted the motion to dismiss Mr. Schobinger's promissory estoppel claim, with leave to amend the complaint.  The court noted that it should be "an easy fix" and expressed some consternation at California's "seemingly pointless" pleading standards.

The breach of contract claim is pretty straightforward.  Twitter promised a bonus.  Mr. Schobinger alleged that he did everything he needed to do to qualify for the promised bonus.  Twitter didn't pay.  Perhaps as the litigation will proceed, X will eventually filed a brief saying "Twitter? I don't know her."