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Employee Stock Options Class Action Lawsuit

According to some estimates, employees in the US have lost over $1.5 billion dollars in the last few years as a result of the cancellation or devaluation of employee stock options. ERISA (Employee Retirement Income Security Act) is a federal law that sets minimum standards for pension and health plans set up by private businesses, to protect employees who participate in these plans. If your ERISA has lost value, you may want to contact a lawyer to review your rights.


Stock Options: True Stories and Interviews

ERISA fraud: Why you need to Protect Yourself

protect yourself erisa fraudAs more and more companies and executives are being charged with Employee Retirement Income Security Act (ERISA) stock fraud violations, it is becoming increasingly important that employees keep track of their 401(k) plans and their health insurance plans. [MORE: PROTECTING FROM ERISA FRAUD]

ERISA Rules Violated

In recent years, companies have faced a growing number of lawsuits related to stock fraud. The lawsuits involve large corporations violating the Employee Retirement Income Security Act (ERISA). [MORE: RULES VIOLATED]
About Employee Stock Options
employee stock lossesEmployee stock options are a form of compensation in which an employee is given the opportunity to purchase shares of the company's stock at a certain price. In many cases, that price is lower than the actual or anticipated market price of the shares. Some employment law specialists believe that employee stock option class actions alleging breach of employee stock option agreements, fraud, and/or wrongful cancellation are the next major frontier in employee class action litigation.

Employee stock option litigation often involves a breach or misrepresentation of Stock Option Agreements; some scenarios include:
  1. A group of employees' unvested employee stock options are wrongfully cancelled (i.e., their Stock Option Agreements are breached) when their subsidiary or division is sold by the parent corporation which granted them their options even though the employees continue to work for the same company and in the same jobs after the acquisition;

  2. An employee is denied the rights granted to him by a Stock Option Agreement to accelerated vesting of unvested options following a change in control (merger or sale), despite the fact that his income and/or job duties are dramatically reduced after the merger or sale;

  3. An employee or group of employees are terminated (or their division is sold) specifically to prevent the vesting of unvested employee stock options, which, at least in California, could be a breach of the covenant of good faith and fair dealing; and

  4. A company engages in fraud by lying to its employees about the number of options they will be given, their exercise prices, their vesting schedules and/or their entitlement or lack of entitlement to employee stock options.
Our employee stock option lawyers have experience handling all types of employee stock option cases. These lawyers exclusively represent employees and focus their practice on employee stock option disputes, employee stock option cases, employee stock option litigation, employee stock option class actions, deceptive trade practices, and breach of Stock Option Agreements in connection with employee stock options.

Stock Options: More News and Articles

Stock Options: Honesty and Deception Filter Down from the Top

One needs only to pick up the paper on any given day to read about yet another highly-paid corporate player having his or her way with the system, by thumbing a nose at securities law and manipulating stock options to improve yield and reduce tax. [MORE: STOCK OPTION HONESTY]
 
Stock Options Press Releases
NOV-30-07: Stock option plans are becoming an increasingly popular way for companies to attract and retain highly valued employees. Stock options allow employees the right to purchase shares in the company at a fixed price within a certain period of time. Employees can profit if the stock gains value after they have purchased it, usually at a price that is less than the market value. [MORE: STOCK OPTIONS]
NOV-02-07: Employers who offer stock options and other benefits to their employees are bound by law to act in the best interests of their employees. Unfortunately, some employers that offer stock options breach their duty to their employees, resulting in hard-earned money being lost. [MORE: STOCK OPTIONS]
Stock Options / ERISA Stock Losses in the News
JAN-02-08: A lawsuit has been filed against Embarq and Sprint Nextel alleging the companies have violated ERISA laws. The plaintiffs seek class action status to sue on behalf of around 13,000 retirees. [OCALA: ERISA]

DEC-17-07: An executive vice president of Omni Energy Services Corp. has filed a breach of contract lawsuit against Omni alleging ERISA violations. [CNN MONEY: ERISA]

DEC-03-07: An ERISA lawsuit filed against ABB and Fidelity Management Trust has been granted class action status. The suit alleges the defendants breached their fiduciary duties. [PI ONLINE: ERISA LAWSUIT]

NOV-13-07: Bank of America has agreed to a preliminary settlement regarding the class-action lawsuit that alleges predecessor FleetBoston violated federal pension laws. The suit alleges that FleetBoston converted to a "cash-balance" pension plan without notifying participants. [TRADING MARKETS: STOCK OPTION FRAUD]

OCT-30-07: A participant in Citigroup Inc.'s $12 billion 401(k) plan is seeking class-action status for a lawsuit launched which claims a variety of ERISA fiduciary breaches. [PI ONLINE: ERISA]

OCT-03-07: An ERISA lawsuit filed against ALCOA Inc. has been certified as a class action. The suit states that the company violated the retirees vested rights under the Employee Retirement Income Security Act. Up to 13,000 people could be involved. [DAILY TIMES: ERISA]

AUG-19-07: A consent order resolving an ERISA lawsuit will require a payment of $3.5 million to a union's pension plan. The lawsuit was filed after some of the plan's trustees allegedly diverted plan assets to renovate and operate Konocti Harbor. [NEWSBLAZE: ERISA]

AUG-10-07: An appeals court has revived an ERISA lawsuit filed against New England Life Insurance Co. by Wilmington Shipping Co. The suit alleges that New England Life Insurance breached its fiduciary duty by mismanaging pension plan investments. [PENSIONS & INVESTMENTS: ERISA]

AUG-06-07: Participants in 401(k) plans can sue administrators under ERISA even if the participants have taken all of their money out of the plan. The Third Court of Appeals noted that ERISA entitles participants to what should be in their accounts given the terms of the plan. [FINANCIAL WEEK: ERISA]

AUG-03-07: A class-action lawsuit has been filed against Aetna Inc., alleging the company violated ERISA by improperly reducing benefits for out-of-network services. [BUSINESS INSURANCE: ERISA]


Employee Stock Options Legal Help

If you have suffered stock losses from the cancellation or devaluation of employee stock options, please click the link below to submit your complaint to a lawyer who will review your claim for free.

Please click here for a free evaluation of your case
Squitieri & Fearon LLP - Stephen Fearon
The attorneys at Squitieri & Fearon, LLP have recovered hundreds of millions of dollars for individuals who have been injured, misled and defrauded.


Posted on Mar-18-04
Updated on Mar-30-08

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