Legal Question in Business Law in Texas
Stock option grant cancellation
Three years ago I received a stock option grant as part of an employer's compensation package. The company presumably published the plan document governing this grant online at that time. However, I didn't see that document until recently. I don't believe that my online acceptance of the grant was accompanied by any statement confirming receipt of the plan document. I can't verify this though because the web site reports 'Agreement not available' when I try to review the agreement. The basic terms of the grant (number of shares, option price, expiration date, vesting schedule, etc.) are still viewable, as is the plan document.
About four months ago that employer laid me off. 80% of my shares had vested and were exercisable. Two weeks ago I visited the web site that would allow me to exercise and sell my shares, only to discover that the grant had been cancelled 90 days after my termination. This provision is in the plan document, but since I hadn't seen that document before I wasn't aware of it.
What are my chances of successfully suing the company to either reinstate my grant, or otherwise compensate me for its cancellation?
2 Answers from Attorneys
Re: Stock option grant cancellation
Without examining any of the documents, my gut feel is that your chances are fair to middling.
Understand that the weight, and the odds, are stacked against you.
Re: Stock option grant cancellation
If I understand the facts properly as you have presented them, your chances are probably slim and none. Imagine the result if everyone could claim that they didn't realize they had to take a certain action before a deadline date because they didn't bother to make an inquiry until after that deadline date had passed!
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