Legal Question in Investment Law in California

Re: Stock options

There is a huge range of possibilities here, depending upon (1) the terms of your option contract with the original (bought out) company, (2) the terms of purchase by the successor company, including whether the successor company acquired the original company by purchase of its stock or by purchase of its assets only; (3) the current value of the successor's stock, and (4) whether any arrangements with the option holders have expired.

It seems to me very unlikely you can expect repayment of the exact amount ($1,850) you paid for the option. Whatever you now own or have a right to is probably worth less that $1,850, but possibly more!

I suggest you contact the corporate secretary or the shareholder relations department of the successor company. Identify yourself as the holder of options of the original company and ask for copies of all documents furnished to holders of the original company's stock and options that relate to their rights in the merger or buy-out. They might be able to tell you whether your options are valueless (because of expiration or low market value of the stock on which they represent an option to buy) or whether they can be exercised or redeemed for cash or stock.

Good luck; this is a very technical area of the law and the amount of money involved may not warrant your hiring a lawyer to pursue the matter. You need to first figure out whether what you hold has any value at all, then if there is significant potential consider seeing a business attorney.