Court Rejects Class Action Status in Lawsuit Against Twitter

A California court has rejected class action certification for a lawsuit brought against Twitter by a former employee. The lawsuit claimed that Twitter failed to pay bonuses to laid-off workers that were allegedly promised.

Background of the Lawsuit

The plaintiff, Mark Schobinger, served as Twitter’s senior director of compensation from 2022 to 2023. This period coincided with the company's acquisition by Elon Musk. According to an order issued by the U.S. District Court, Northern District of California, Schobinger was part of a group of employees who were eligible to receive annual bonuses in early 2023. However, the company was not obligated to pay these bonuses, a fact that was "undisputed" under the terms of the bonus agreement. The decision to pay the bonus was left to the company's discretion. Schobinger claimed that Twitter had promised employees in April, May, and August of 2022 that they would receive the bonus if they remained with the company throughout the acquisition process. Schobinger stated that he stayed with the company during this period because of this promise. After not receiving the bonus, he filed the lawsuit and sought class certification.

Court's Decision

U.S. District Judge Vince Chhabria denied Schobinger’s motion, stating that he was not suitable to act as a class representative. The judge pointed out that Schobinger had previously argued against Twitter paying the bonus while he was still employed by the company. In November 2022, Schobinger sent a message to the company’s "Head of People Experience," stating that whether to pay the bonus was entirely up to Musk's "discretion." He also recommended that the bonus should not be paid. In February 2023, Schobinger sent a "white paper" to several executives, advising that "not paying a bonus would be prudent." Evidence also suggests that Schobinger told Musk in a meeting a month earlier that the company need not pay the bonus. These statements led the judge to conclude that Schobinger was "not an adequate class representative."

Other Lawsuits Against Twitter

Twitter is facing multiple lawsuits related to employee layoffs. After Musk took over Twitter in 2022, the company reduced its workforce. In August, U.S. District Judge Araceli Martínez-Olguin dismissed a lawsuit brought by former employees with disabilities who were fired after the takeover. The plaintiff, Dmitry Borodaenko, claimed that the terminations violated the Americans with Disabilities Act as the layoffs treated disabled people differently. However, Martínez-Olguin noted that the plaintiff did not provide evidence to support his claims. In July, a California judge sided with Twitter in another case related to mass staff layoffs. The plaintiffs sought at least $500 million as severance pay for approximately 6,000 terminated workers. However, the judge noted that after Musk took over, Twitter informed staff members that they would receive lower severance payouts when laid off, thus dismissing the complaint.

Bottom Line

The court's decision to deny class action status to the lawsuit against Twitter highlights the complexities and challenges involved in such cases. It also underscores the importance of clear communication and understanding between employers and employees regarding compensation and benefits. What are your thoughts on this matter? Do you think the court made the right decision? Share this article with your friends and let us know your views. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.