Legal Question in Business Law in California

Re: stock option

It sounds as though the option was never granted, so your rights, and the claims of any lawsuit, would require a threshold determination as to whether you were entitled to receive an option in the first place, and then second, whether and how much recoverable damages resulted. Pressing these matters with a current employer is always a ticklish matter, especially if you are happy with the job in other respects. I think step one might be a private discussion with the plan administrator, or whoever fills that role at the employer. Then, or maybe first, review both the offer and the option plan to try to get an idea if the company had a complete "out" based on the board failing to certify, or on the sale itself. If you remain uncertain, it's time to hire a lawyer with some employment contract experience.