Do I have a case against the company?

Google
QIHx74

Go to company page Google

QIHx74
Feb 21 47 Comments

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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TOP 47 Comments
  • Imagine making millions but not knowing that you should ask a lawyer these types of questions, not random people on a semi-anonymous app (most of whom aren’t lawyers).
    Feb 21 7
    • Google
      jSpr18

      Go to company page Google

      jSpr18
      > Anyone can write any post, and anyone can write any comment.
      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.
      Feb 22
    • Imagine putting in this much effort to defend some jackass who doesn’t know where to seek legal advice
      Feb 23
  • VMware
    jedP10

    Go to company page VMware

    jedP10
    was there any blackout period mentioned in the offer letter or any vesting docs?
    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.
    Feb 21 11
    • Gitlab.. i don’t think i get this ‘it’s not like he was forced to sell his shares’.. the bottomline is they should have hd their shares to sell at the time when they should legally have had them.. if they were not available there was a goof up.. and if that costed financial losses for OP someone has to pay for the losses if op chooses to pursue..
      Feb 21
    • VMware
      jedP10

      Go to company page VMware

      jedP10
      @gitlab i don’t think you know how this works. deliberate or not, op lost money because of company’s negligence.
      if it was other way around, there wouldn’t be lawsuit in first place.
      Feb 21
  • New
    JvOb47

    New

    JvOb47
    Thoughts and prayers
    Feb 21 0
  • Spotify
    cafedead

    Go to company page Spotify

    cafedead
    Not really. They would do it the same way whether it would tank 50% or not. I honestly think it was not intentional, and there is no secret accounting office to pull those tricks. They just don’t care about you and inconvenient blackout window.
    Feb 21 2
    • New
      L2+R2+X+O

      New

      L2+R2+X+O
      There’s probably a case for negligence here though, regardless of if the stock went up or down.
      Feb 21
    • Meta
      OwmM55

      Go to company page Meta

      OwmM55
      If contract says they were legally allowed to sell on those dates then they def have a case. A lawyer would know the relevant state and federal laws to know who to go after.
      Feb 21
  • NetApp / Strategy
    newjobplz

    Go to company page NetApp Strategy

    PRE
    KPMG US
    newjobplz
    No idea. Perhaps have an introductory chat with an employment lawyer and see what they recommend
    Feb 21 2
    • Google
      QIHx74

      Go to company page Google

      QIHx74
      OP
      Lawyers telling me I might have a negligence case, and some are recommending I try to get the company to send me a check for the damages.
      Feb 21
    • Chime
      SubtleBee

      Go to company page Chime

      SubtleBee
      If that’s their recommendation, then I’m guessing that the 10% you lost is not a big enough number to justify a litigation + lawyer fees.
      Feb 21