A company I worked at (not Google) vested my first chunk of stock after I hit my 1st year cliff, the day before I planned to leave the company.
The day I left the company, they told me I could not sell shares until their blackout period for employees would be over 2 months later, after earnings. Weeks go by after I leave the company, and come January my W2 does not include the shares that vested. I thought to myself hmm, that was odd.
Shareworks was showing the stock as “vested” but not available.
Stock then proceeded to tank about 50% since I “vested” with days leading up to the earnings 2 months after. Company knew of internal information that would tank the stock that I was not aware of after I left. As they released that information through the following months, they continued to withhold my shares through all of it and didn’t let them become available.
Honestly, that part is understandable to me. Blackout periods are standard. This next part though… *this* is the part I don’t understand: 👇
Company informed me that once it is 2 days after the earnings are released in February, that I would then be able to sell my shares.
The day earnings are released, stock goes down another 20%.
I reach out to the company and I tell them I want to place a sell order on everything as soon as market opens on the day I can sell. I told them the Shareworks app wasn’t letting me place the order and if they could just do it for me. I double check with the company and they assure me I can sell the next morning.
The next morning (two days after the earnings release, the day I am supposed to be able to sell). I check my Shareworks account and I CANT sell! I reach out to the company and tell them it’s not letting me sell. They don’t respond. Stock goes down another 10%. The company then tells me they’re reaching out to Shareworks to see what went wrong.
I call Shareworks myself too that very moment. They tell me that the reason I can’t sell is that the company has not placed any availability window for my stock at all, so that’s not on Sharework’s side. And that’s something the company could easily have done whenever.
The stock continues to fall. I’ve lost in total over 65% of the value from the day I vested. In that morning where they told me I could sell and then I actually couldn’t, I lost an additional 10% of what was remaining.
Company then happens to get back to me that evening when markets are closing saying they are sorry about the inconsciente and that I will be able to sell after two more business days. Shareworks only then showed “Pending Distribution” and they took out the shares from my account to cover taxes. At the new super low price. As if I had vested then rather than 2 months ago.
It was originally millions of dollars worth of shares. I sold the shares the moment the market opened when I could. Them not setting up my account properly cost me an additional 10%. Days after all other employees were able to sell their shares but not me who had left.
I’m obviously talking to employment lawyers. But on top of that I’d like to hear additional opinions. What do I do? Do I have a case against them? Is it worth pursuing?
Curious what y’all would do if you were in my situation?
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comments
I mean, if anything, you were the one who missed this?
OP generated interesting discussion with this thread. You try to shut down the discussion by saying it was silly to ask here because no one are legal experts when no one had such expectations?
I don't think the barrier of entry to provide input online needs to be subject expert with professional experience?
Anyways, whatever, this whole mini-thread was pointless. I'll just reiterate my initial opinion that comment like yours are largely unproductive and unhelpful and miss the entirety of the point of online discussion. You do you though.
the 50% drop of value in 2 months is not company’s negligence.
not being able to sell 2 days after earnings because of their negligence is a good enough cause to file a suit.
whether it’s worth it to pursue depends on other costs. save your email correspondence.
i would be mad if i lost 75k over someone’s negligence.
if it was other way around, there wouldn’t be lawsuit in first place.