“It would be grossly inefficient to require each employee to bring a case individually,” Schobinger wrote in his motion. He emphasized that certifying the class would streamline the legal process, reduce expenses, and protect employees from retaliation.
Schobinger originally filed the lawsuit in June 2023, claiming executives promised in August 2022 that bonuses would be paid at 50% of the target amount, with funds set aside for distribution. However, those bonuses never materialized, and Schobinger resigned from the company in May 2023.
X Corp. pushed to dismiss the case, citing its discretionary bonus plan, which they argued gave them the authority to deny or modify any bonus payouts. However, U.S. District Judge Vince Chhabria largely rejected the motion in December 2023, stating that Schobinger’s case rested on enforcing executives’ oral agreements rather than challenging the discretionary bonus plan.
Schobinger’s legal team also highlighted concerns about potential retaliation, given Musk’s history of publicly criticizing employees on social media. The motion argues that pursuing the case as a class action would offer protection for workers who might otherwise fear personal retribution.
